BP Takeover Buzz Builds with ADNOC News
UAE oil giant ADNOC has joined the fray of firms said to be circling some of BP’s (NYSE:BP) highly prized assets, as takeover speculation for the embattled energy major kicks into overdrive.
Abu Dhabi National Oil Company is thought to be weighing up a move for some of the London-listed firm’s assets, should the oil major break up or seek to divest more units, Bloomberg reported Wednesday, citing unnamed sources familiar with the matter.
ADNOC is reportedly most interested in BP’s liquefied natural gas (LNG) assets, although it is also said to have considered a full takeover of the company. It is understood by Bloomberg that any prospective deal would likely take place via ADNOC’s international unit, XRG.
Spokespeople at BP, ADNOC and XRG declined to comment on the speculation when contacted by various media outlets.
A protracted period of underperformance relative to its industry peers has thrust BP into the spotlight as a prime takeover candidate. British rival Shell (NYSE:SHEL), as well as U.S. oil giants Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), are among some of the names that have been touted as possible suitors.
Any potential deal between ADNOC and BP is seen as far from a foregone conclusion, but analysts point out that the two companies share a long-standing relationship across hydrocarbons and renewables over a range of geographies, most notably in Abu Dhabi and most recently in Egypt.
Shares in BP edged up a dime to $30.92.
