BP, the British oil giant, has recently found itself in the sights of rials as a prime candidate for a takeover. However, expert energy analysts are questioning whether its most viable suitors will step up to the challenge.
Ahead of its annual general meeting, BP has recently attempted to resolve its image with the launch of an extreme reset that fundamentally changed its strategy. Aiming to restore investor confidence in February, the company pledged it would cut spending on renewables and boost its annual expenditure on oil and gas, its core business.
Murray Auchincloss, BP’s CEO, commented that the pivot had attracted substantial interest in the oil company’s non-core assets. These include the Castrol lubricant brand that produces gear oil, coolant, industrial grease, engine oil and other solutions.
BP’s 180 on its former green strategy followed a prolonged period of poor performance in comparison to its peers in the oil and gas industry. The consequent depressed share price sparked further speculation of BP making prospective tie-up with its domestic competitor Shell. However, US oil majors Chevron and Exxon Mobil have also been suggested as possible candidates to make moves on BP’s £54.75 billion operation.
In a recent interview with American business news channel, CNBC, Maurizio Carulli, an analyst for energy and materials at Quilter Cheviot, commented:
“Certainly, BP is a potential takeover target — no doubt about that.”
When contacted by the channel for comments, BP, Chevron and Exxon were unavailable to respond and Shell declined to remark.
