BP is less likely to be acquired following its $18.7 billion settlement over the 2010 Macondo oil spill, Chief Executive Officer Bob Dudley said on July 28.
The has been much speculation in recent months that the British oil and gas giant could become an acquisition target for a larger rival, leading the British government to warn it would oppose any takeover bid.
While some analysts expected BP to be even more attractive following its settlement with the U.S. authorities this month to resolve most claims from the Gulf of Mexico oil spill, Dudley sought to quell any speculation.
"As a result of the settlement in the U.S. it is actually less likely that someone would want to acquire BP and it is certainly not our intention to put the company up for sale," Dudley told reporters.
Merger and acquisition activity in the energy sector has been rekindled as company valuations slumped along with oil prices, highlighted by Royal Dutch Shell's $70 billion bid to acquire BG Group earlier this year.
BP shares are still some 35 percent below their value before the 2010 Macondo rig explosion and spill that killed 11 workers. The company's second-quarter profit slumped by nearly two thirds from a year ago as it took a huge $10.8 billion charge related to the settlement.
Recommended Reading
Diamondback, Verde Plan Converting Permian Natgas to Gasoline
2024-02-13 - Diamondback Energy subsidiary Cottonmouth Venture LLC has entered into a joint development agreement with Verde Clean Fuels to build a natural gas-to-gasoline facility in the Permian Basin.
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
SCF Acquires Flowchem, Val-Tex and Sealweld
2024-03-04 - Flowchem, Val-Tex and Sealweld were formerly part of Entegris Inc.
Enbridge Closes First Utility Transaction with Dominion for $6.6B
2024-03-07 - Enbridge’s purchase of The East Ohio Gas Co. from Dominion is part of $14 billion in M&A the companies announced in September.
Pembina Cleared to Buy Enbridge's Pipeline, NGL JV Interests for $2.2B
2024-03-19 - Pembina Pipeline received a no-action letter from the Canadian Competition Bureau, meaning that the government will not challenge the company’s acquisition of Enbridge’s interest in a joint venture with the Alliance Pipeline and Aux Sable NGL fractionation facilities.