Posted by John Donovan: 1st August 2024
In a plot twist straight out of a corporate soap opera, there’s buzz about a possible merger between the titans of pollution, Shell and BP. Two decades ago, BP’s John Browne fantasized about buying out Shell, but now the tables have turned, and Shell’s boss Wael Sawan might be toying with the same idea. While this merger remains as real as unicorns, some bits of it almost make sense.
Sawan, fresh from presenting second-quarter results that had analysts wiping their tears of joy, doesn’t really need this deal. Since he took over in January 2023, Shell’s $229 billion behemoth has seen shares climb 20%, all thanks to a disciplined approach to pretending to care about the environment while doubling down on fossil fuels. Meanwhile, BP, with its $97 billion market cap, has seen its shares drop 5%, underperforming not just Shell but also American giants like Chevron and Exxon Mobil.