Shell is reportedly in the process of considering an acquisition of bp — a large-scale merger that, while not necessarily the first of its kind, would have significant implications for the c-store and oil industries. The news was first reported by Bloomberg, which cited people familiar with the matter.
The report noted that Shell is actively working with advisers to consider the details of a potential sale, and also that the likelihood of a transaction is largely dependent on bp’s stock price.
bp’s stock has been slipping in recent weeks, with Reuters noting last week a 48% profit drop as the company departed with its strategy chief and announced plans to push back its previously-announced, ambitious clean energy goals. The company initially had the intention of becoming net-zero by the year 2030.
Now, as economic pressures and shareholder calls have become louder, the company is pivoting by delaying these initiatives for the foreseeable future, in addition to selling $20 billion of assets through 2027, while also reducing spending and share buybacks to cut costs.
Shell, on the other hand, reported a positive first quarter in its latest earnings report, marking $5.6 billion in adjusted earnings and $3.5 billion in share buybacks. The company also completed its acquisition of Pavilion Energy in the quarter, in addition to three strategic divestments.
“Shell delivered another solid set of results in the first quarter of 2025. We further strengthened our leading LNG business by completing the acquisition of Pavilion Energy, and high-graded our portfolio with the completion of the Nigeria onshore and the Singapore Energy and Chemicals Park divestments,” said Shell CEO Wael Sawan. “Our strong performance and resilient balance sheet give us the confidence to commence another $3.5 billion of buybacks for the next three months, consistent with the strategic direction we set out at our Capital Markets Day in March.”
Talks between Shell and bp are still in the very early stages, and there is no guarantee that a transaction will occur.
Industry-Wide Consolidation
The news comes during a unique time in the c-store space, as retailers contend with an increasingly consolidated landscape. On Monday, the industry learned that Sunoco had entered into a definitive agreement to acquire Parkland Corp. for a staggering $9.1 billion.
The deal, which is expected to close in the second half of this year, would create the largest independent fuel distributor in the Americas, according to Parkland Executive Chairman Michael Jennings.
“This strategic combination is a compelling outcome for Parkland shareholders,” said Jennings. “The board unanimously recommends the proposed transaction, recognizing Sunoco’s commitment to safeguarding Canadian jobs, retaining the Calgary head office and further investing in Canada.”
The deal is expected to create $250 million in run-rate synergies by year three, Parkland noted in a statement.
Other notable large-scale acquisitions that have taken place in 2024-2025 include:
- Nouria and Enmarket
- Maverik and Kum & Go
- Couche-Tard and GetGo
- Casey’s and CEFCO
Plus, 7-Eleven parent company Seven & i Holdings is still actively engaged in talks with representatives from Circle K owner Alimentation Couche-Tard about a potential $47 billion acquisition.
