Shell acquires BP, potentially becoming the largest M&A deal of the year.

A BP spokesperson declined to comment. Shell holds a stronger position in the negotiations, with its stock price outperforming BP’s significantly in recent years. Like BP, Shell is headquartered in the UK but operates globally, with a market capitalization exceeding $200 billion. BP has lagged behind its major oil peers due to its aggressive and arguably misguided pivot from fossil fuels to renewable energy, compounded by years of management turmoil and operational disasters. Elliott Investment Management, an activist investor, holds over 5% of BP’s shares and has been pushing for corporate change since at least February this year—highlighting the heightened risk that this oil-and-gas producer could face a takeover bid from a rival. In response, BP has taken several steps to ease investor concerns: earlier this year, it announced plans to increase oil-and-gas production and drastically cut clean-energy investments. BP is also seeking to sell its Castrol-branded lubricants business and has indicated it may divest at least part of its solar subsidiary Lightsource. Most recently, BP stated that Helge Lund—its chairman and chief architect of its low-carbon strategy—plans to step down. Meanwhile, Shell has focused on its most profitable businesses, pledging to expand oil-and-gas extraction while scaling back green-energy targets. Shell CEO Wael Sawan recently stated publicly that the company’s threshold for large-scale deals remains high. In May, Shell announced a multi-billion-dollar share buyback program—the latest installment of its long-term, large-scale buyback initiative. According to a prior report by The Wall Street Journal, Shell has been working with banks to plan the sale of its chemical assets in Europe and the U.S. Acquiring BP would require Shell to undertake a multi-year integration process, complicated by cultural clashes and the likely need to divest overlapping assets. Yet the deal could broaden Shell’s global trading footprint and strengthen its dominance in sectors such as liquefied natural gas (LNG). Analysts and investors also note strong complementarity between the two companies’ operations in the Gulf of Mexico. The acquisition would offer Shell opportunities to spread costs across a larger operational base—and effectively eliminate a key competitor. Moreover, Shell is politically more palatable to UK regulators, who might oppose a foreign buyer acquiring BP—a century-old company whose origins trace back to British imperial oil exploration in Persia.

China Zhongzhi Weiyeh Information | Shell and ExxonMobil consider selling their $8-billion joint chemical venture.

According to sources cited by the Financial Times, Shell and ExxonMobil have engaged Bank of America as their financial advisor to advance the sale of Infineum—a UK-based specialty chemicals joint venture in which both companies hold a 50% stake. The target valuation is approximately $8 billion, and the formal sales process is expected to launch within days. Headquartered in Abingdon, Oxfordshire, UK, Infineum was established in 1999 through the merger of Shell’s and ExxonMobil’s respective lubricant and fuel additive businesses. Its products are sold in 90 countries, and it operates manufacturing and blending facilities in Zhangjiagang (China), Singapore, the United States, and India. Its annual EBITDA stands at roughly $700 million to $800 million. The lubricant additives market—Infineum’s core domain—is highly concentrated. Four players—Lubrizol, Infineum, Chevron Oronite, and Afton—collectively account for about 85% of global market share; Infineum holds approximately 23%, with particular strength in automotive lubricant additives. Infineum’s Zhangjiagang facility currently has a compounded additive production capacity of 100,000 tons per year. In 2025, it completed commissioning of its magnetorheological fluid additive production line. In 2026, it is advancing a product-mix restructuring initiative targeting 62,000 tons of diesel-engine lubricant additives.

Shell in Deep Discussions With Bidders Over Potential US Chemicals Deal: CEO

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Shell CEO confirms deep discussions on selling its US chemical portfolio, potentially valued at $8 billion, as bidders including ExxonMobil express interest. The move follows positive Q3 earnings despite narrowed global chemical margins.

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