0611 GMT - Bloomberg's unconfirmed report stating that U.K. oil company Shell was evaluating a potential acquisition of rival BP can't be ignored, even if the timing is curious, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani say in a note. BP has underperformed Shell by 17% over the past year and 84% over the past five years, the analysts write. The deal looks dilutive to most of Shell's key metrics, they say. The core strategic rationale for the combination is unclear, they say. According to the analysts, Shell has two challenges: defining and executing its energy-transition strategy and the questions over its upstream portfolio longevity, neither of which would be solved by the deal. "Shell would be much better served to continue on with its plan, and keep M&A smaller and more focused," RBC says. (anthony.orunagoriainoff@dowjones.com)
(END) Dow Jones Newswires
May 06, 2025 02:11 ET (06:11 GMT)
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