Shell Explores BP Acquisition, reports strong Q1 results

Shell is studying the feasibility of acquiring the British oil giant, British Petroleum,  according to Bloomberg. 

One key factor in the decision would be the performance of the British company’s shares, as it would affect the value of the buying offer. The stocks of BP had been on the decline for some time, losing about 30% of their value due to the changes in the company’s policy under different managements. 

BP and Shell were similarly sized for years, but recently Shell has surged ahead, now nearly twice BP’s size with a market valuation of around £149 billion, according to Reuters.

Even though Shell reported a 28% drop in first-quarter net profit to $5.58 billion, the figure came much higher than analysts’ expectations.