BP Shares Surge Amid Takeover Talk as Market Values Lag Asset Worth
BP shares have jumped 4.00% in early trading on Friday, putting the UK oil major near the top of the FTSE 100 leaderboard, as fresh takeover speculation fuels investor interest.
According to The Financial Times, energy giants Shell, Chevron, ExxonMobil, TotalEnergies, and Adnoc have each separately calculated whether a bid for BP would make strategic and financial sense.
The report highlights that BP may be significantly undervalued. A “sum of the parts” valuation suggests its assets could be worth over £120bn—more than double its current £57bn market capitalisation, which has been weighed down by a sharp decline in share price over the past year.
“The continued underperformance of BP makes it open to a takeover,” said a source close to activist investor Elliott Management, which has reportedly built a major stake in the company.
Just last week, Bloomberg reported that Shell had been assessing a potential bid for BP, a move that could reshape the global energy landscape by creating a new industry heavyweight.
Commentary: BP Vulnerable as M&A Pressure Builds in Energy Sector
Whether a formal bid materialises remains uncertain, but the renewed interest in BP underscores the growing wave of consolidation in the oil and gas sector, as it grapples with structural and existential challenges.
Analysts suggest BP may have made itself a target through a combination of strategic missteps and operational misfires. With its shares underperforming and trading well below asset value, the company appears increasingly exposed—particularly given the valuation gap between UK and US energy majors.
“A takeover by a large US player could make strategic sense,” one observer noted, pointing to BP’s significant presence in the United States and the deep capital reserves of firms like Chevron and ExxonMobil.
However, political sensitivities could complicate matters. While a merger with Shell might present fewer regulatory hurdles domestically, any approach from a US firm would place the UK government in a difficult position.
“It’s hard to imagine the Starmer government wanting to block a deal from Shell,” the source added. “But telling Donald Trump you’re turning away Chevron or ExxonMobil would be another matter entirely.”
