Shell Denies Report of 'Biggest Deal in a Generation'

Shell is denying reports that it is in talks to acquire BP in what could be the energy industry's biggest deal in decades. The Wall Street Journal, citing "people familiar with the matter," reported Wednesday that Shell was in early-stage talks to snap up its rival in "the largest oil deal in a generation." With BP valued at around $80 billion, it would be the industry's biggest merger since the $83 billion deal that created ExxonMobil in 1999, the Journal noted.

The acquisition would allow Shell to "spread costs over a larger operating base and would box out rivals," per the Journal. Since both firms are British, the deal might also be more likely to win approval from the country's regulators than a merger involving a foreign firm. Shell, however, dismissed the report as "market speculation." "No talks are taking place," a spokesperson told Reuters. "As we have said many times before, we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline, and simplification."