0939 GMT - BP's cheaper valuation means it is vulnerable to takeover approaches from across the oil and gas sector, not necessarily just from Shell, AJ Bell investment director Russ Mould writes. Bloomberg, citing unnamed sources, reported that Shell is working to evaluate a potential acquisition of rival BP. A clouded economic outlook and weak oil and gas prices mean industry consolidation is likely, Mould writes. Any deal to buy BP would be complex and would take a long time to execute and integrate, he writes. Furthermore, most "transformational" deals destroy, not create value, he adds. BP shares trade up 1.24% at 354.50 pence while Shell's shares fall 1.43% to 2,451.50 pence. (adam.whittaker@wsj.com)

(END) Dow Jones Newswires

May 06, 2025 05:39 ET (09:39 GMT)

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