Shell Plc is reportedly eyeing a potential takeover of BP Plc.
Bloomberg reported that the oil major is in serious discussions with its advisers over the merits of a possible acquisition but is waiting for further stock and oil price declines before deciding whether to pursue a bid.
Shares of BP have lost almost a third of their value in the last year as oil prices plummeted.
Sources who wished to remain anonymous told Bloomberg that any final decision will depend on whether BP stock continues to fall.
According to the report, Shell is not the only large energy company analysing whether to bid for BP.
Bloomberg quoted a Shell representative as saying: “As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification.”
BP has declined to comment.