https://www.thisismoney.co.uk/money/markets/article-14400649/Pressure-BP-merge-Shell-creating-national-oil-giant.html
12 replies (most recent on top)
Other than physical location of the head office, why would anybody want either?
A company should buy company X to get asset A, B, & C and Technolgy Q, R, & S to acquire value. Synergy savings... come on that's never gonna be really materialized.
There's just not a value proposition here. One pile of mess plus one pile of mess is just a worse mess than either alone
Murray Auchincloss is a bigger tu-d than anyone in our company.
Combining two directionally-incorrect companies only slows the inevitable. If either were worth anything, they would be actively targeted for takeover by a strong bidder.
Looks like the UK slackers are starting to to worry.
BP pays a 5.5% dividend while making 1-3% return on its assets. How does that help Shell?
The merger only helps BP. It adds unnecessary debt to Shell's balance sheet.
the business case for the merger, which is in the article that clearly none of you read, is that it takes massive asset scale to compete in the high interest rate world
Wael will go for this and use it as a reason to sack at least 50,000 people (should be 80,000 in truth). Clearly there would be synergies which is all the bankers care about.
NO! Please No!
What can you point to that either group's leadership has done positively that would have synergy with the other?
Do BP/ Shell co-ventures work better?
How many Shell projects sit around dreaming if only they had BP technology?
How many BP projects sit around dreaming if only they had Shell technology?
There is just no reason. The short comings compound rather than going away.
the odds that shell LT will do it just went up because they’re a bunch of spineless brainless babies who do whatever third parties say every single time
all they want is to appease shareholders long enough to cash out. but green garbage? decarbonize by selling or even shutting down refineries? get in on the shale bo-m? trends and memes only
"Bankers believe that a tie up between the two makes sense. This would create a behemoth with 180,000 employees. The two companies have similar exploration projects in Iraq and the Gulf of Mexico that could be merged, as well as high performing trading arms."
Reduce the Shell employee head to 80,000 just to take on bloat again. Two negatives does not make a positive. The investment bankers are only for the short term profit. Do not listen to what they say. Pray the Shell LT is aware of this.
"Analysts say that BP may announce plans to offload assets including its US shale oil and gas division and its lubricants business Castrol, which it bought for £4 billion in 2000."
Buy BP's as it sheds assets. Remember buy low and sell high. Opposite Shell mentality.
I’m not sure the staff need reasons for self pity and idling.
It’s too bad Shell’s EC has to be pushed by investment banks and institutional investors to take a decision. Are these external parties just wrong in their positive assessments of an acquisition or is the EC just slow off the mark, handwringing over what to do?
Communication would be nice; or don’t they realize how much uncertainty saps staff morale and productivity by speculation, worry and frustration. Leaders: Please lead.