BP shares increased following news that the United Arab Emirates state-owned oil company had shown interest in acquiring the energy giant.
The Abu Dhabi National Oil Company (ADNOC) engaged in initial talks with BP about a potential acquisition, but these discussions stalled, according to Reuters.
ADNOC reportedly concluded that BP did not align with its strategic goals, and political factors also played a role.
BP’s stock surged up to 2.5% in early trading, reaching its highest level since February.
With a market valuation of approximately £90 billion, BP has lagged behind its competitors for some time, sparking rumours of a potential takeover.
This week, Shell also disclosed its contemplation of relocating from the London market to New York, citing the undervaluation of its shares.
The halted negotiations with ADNOC reflect the UAE’s continued interest in acquiring UK assets, although any deal would likely have been scrutinized under national security laws.
This development follows a new law introduced last month that thwarted an Abu Dhabi attempt to purchase The Telegraph.
