ExxonMobil could snap up BP in a single bite
Information sourced from an FT article by Energy Editor Christopher Adams published 15 February 2015 under the headline:
“BP’s battles leave it vulnerable to major move”
Extract
If ExxonMobil chief executive Rex Tillerson really wanted to, he could snap up BP in a single bite. Of all the UK major’s rivals, Exxon, the world’s biggest energy company, has the firepower to swallow BP whole. Could it happen? Some industry insiders think yes.
The article sets out the reasons already highlighted by many other industry experts and observers.
- The financial fall out from Deepwater Horizon disaster
- BP’s “languishing” share price
- The collapse in the price of oil
It points out that as a result of the combined factors, BP’s continuing membership of the “the Big Five” is doubtul and sets out the benefits of a takeover by ExxonMobil, including the potential for Exxon to manipulate U.S. courts to bring down costs arising from Deepwater Horizon and from taking over BP’s stake in the Rosneft/Putin Arctic drilling project.
The article does touch on the prospect of a Royal Dutch Shell bid for BP, but warns that it could run up against a competition investigation.
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