Mega oil and gas company Shell has rejected rumors that it may purchase struggling rival BP, hours after speculation around the mega-merger increased BP’s stock. Early reports on Wednesday saw BP’s shares jump 7 percent as The Wall Street Journal and other news outlets reported that Shell was in early talks to acquire BP for around $80 billion. Although whispers circulated earlier this year that Shell might make a bid for BP, marking the end to the 120-year-old company, the gas giant has now denied that talks are taking place. A spokesperson for Shell called The Journal‘s report “further market speculation” and said that “no talks are taking place.” They did not comment on whether talks had previously taken place. According to The Journal’s reporting, talks between company representatives were moving forward slowly while BP leaders consider the possibility. If the two companies combined, it would create a behemoth worth nearly $300 billion. Shell stock has decreased 0.6 percent today, but the company has recently made record-high profits. BP, on the other hand, has lost almost a third of its market value in the past year, likely due to a failed green energy plan, rocky financial issues, and boardroom turmoil. Murray Auchincloss, BP’s chief executive, could not convince investors that it could recover after a failed attempt to become a net-zero energy company.
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