Shell Rules Out BP Acquisition Amid UK Regulatory Restrictions
LONDON (Reuters) -Shell has not bid for BP and is not actively considering such a move, it said on Thursday, adding it was bound by UK regulations which mean such a statement ban it from making a bid for BP for the next six months.
The Wall Street Journal cited sources on Wednesday saying that Shell was in talks to acquire BP, in response to which Shell said no talks were taking place.
"In response to recent media speculation Shell wishes to clarify that it has not been actively considering making an offer for BP and confirms it has not made an approach to, and no talks have taken place with BP with regards to a possible offer," Shell said in a statement.
"This is a statement to which Rule 2.8 of the Code applies and accordingly Shell confirms it has no intention of making an offer for BP. As a result Shell will be bound by the restrictions set out in Rule 2.8 of the Code."
The six-month ban on making an offer for over 30% of BP's shares can be shortened if another bidder for BP emerges or if BP invites an offer, according to the regulations.
(Reporting by Shadia Nasralla; Editing by Emelia Sithole-Matarise)
