The Emirates will buy the United Kingdom: ADNOC evaluates the purchase of BP
Abu Dhabi National Oil Company (ADNOC) is considering buying BP , but talks didn't get far and the UAE state firm ultimately decided not to pursue a supermajority British takeover, they told Reuters sources familiar with the discussions. So a company still called “British Petroleum” would become the property of an Emirati company.
ADNOC has recently held preliminary talks with BP and has approached investment banks for advice on a potential acquisition, according to two of Reuters' sources.
ADNOC's reported approach comes as the U.S. oil and gas industry is experiencing major consolidation, with many multibillion-dollar deals announced in America in recent months. The Oil & Gas sector is concentrating and consolidating.
The wave of mergers and acquisitions (M&A) has not yet reached Europe, although analysts have said BP could be the target of a potential takeover by a rival.
BP's shares suffered earlier this decade, when the company announced its "net-zero" strategy that would have meant a real challenge to the nature of society. In early 2023, investors applauded BP's reversal of some targets and its commitment to invest more in resilient oil and gas projects than previously planned and to pump more hydrocarbons over a longer period to meet the needs of the world.
In February 2023, BP said it will produce more oil and gas for longer and increase investment in oil and gas projects by an average of $1 billion per year through 2030. Indeed, recent stock prices
For European majors, the goal “is to reduce and even close the structural rating gap relative to their premium-rated US peers,” said analysts at Wood Mackenzie , in the wake of Exxon and Chevron's announcements of mega all-stock castings.
In ADNOC's search for an acquisition target, BP was one of the companies the UAE firm considered, one of Reuters' sources said.
There were some direct talks between ADNOC and BP, but "they didn't get far," the source told Reuters.
BP and ADNOC have collaborated on projects for more than five decades. The most recent collaboration was the creation of a natural gas joint venture in Egypt.
Ties with the Middle East have always been very strong for BP, founded in 1909 as Persian Oil Company, Ltd, which became Anglo-Iranian Oil Company, Ltd., in 1935 and British Petroleum Company Limited in 1954.
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The article The Emirates will buy the United Kingdom: ADNOC considers the purchase of BP comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gli-emirati-si-compreranno-il-regno-unito-adnoc-valuta-lacquisto-di-bp/ on Fri, 12 Apr 2024 17:58:56 +0000.