Shell’s Stock Dips Amid BP Takeover Rumors and Strategic Reshuffling
Shell plc (SHEL) saw its shares edge lower by under 1% in both U.S. and London trading, as investors weighed takeover speculation and internal strategic shifts. The energy giant's ADR hovered around $72 in New York, while London shares closed NEAR 2,706p.
Market attention focused on the resignation of M&A chief Greg Gut after Shell's leadership blocked a proposal to explore acquiring BP. CEO Wael Sawan has consistently prioritized share buybacks over large-scale acquisitions, citing execution risks. BP's prolonged underperformance continues to fuel sector consolidation rumors, despite Shell's official denials.
Governance questions emerged from an EY audit investigation, though analysts see limited immediate financial impact. Shell's portfolio adjustments include negotiations for LLOG assets, temporary Gulf production halts, and Brazilian divestments.
Long-term growth drivers remain intact, with upstream projects in Namibia and South Africa progressing alongside AI integration initiatives. The company maintains its trajectory toward Q4 2025 earnings disclosure scheduled for February 5, 2026.