BP shares jumped Wednesday on a report that the oil major is in early-stage talks to be acquired by Shell.
People familiar with the matter told The Wall Street Journal that talks between BP and Shell are active but a deal is far from certain. The talks are progressing slowly, one person told the Journal.
BP shares were last up about 7%. The British oil major is currently valued at nearly $85 billion.
However, it is unlikely Shell would purchase the entirety of BP, people familiar with the matter told CNBC’s Brian Sullivan. It is more likely that multiple companies would purchase different parts of BP if a deal does transpire, the people said.
BP has struggled to find direction over the past five years. It set ambitious goals to slash carbon dioxide emissions and invest in renewable energy. But BP announced plans in February to boost oil and gas investment and slash its renewables spending as the company underperforms Shell and U.S. rivals.
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