Royal Dutch Shell Plc is in early-stage talks to acquire its London-based rival, British Petroleum, according to reports by Wall Street Journal.
The report of what will be the largest oil deal ever has already sent shares of BP surging 10% on the NYSE.
Talks between company representatives are active, but any terms of a potential deal couldn’t be learned and a transaction is far from certain, the newspaper reported, citing people familiar with the matter.
BP is under intense pressure after years of under-performance and the intervention of activist shareholder Elliott Investment Management. Speculation has been growing that the embattled company would become a takeover target, and Bloomberg reported in May that Shell had been studying the merits of a deal.
