BP, the British multinational oil and gas company, is reportedly the subject of takeover interest from several major energy corporations, including Shell, Chevron, ExxonMobil, TotalEnergies, and Abu Dhabi's Adnoc. This interest has been spurred by a significant decline in BP's share price, which has rendered the company a more attractive acquisition target.

As of May 9, 2025, BP's market capitalization stands at approximately £57 billion, substantially lower than its asset valuation exceeding £120 billion. This disparity has drawn the attention of industry rivals evaluating potential acquisition opportunities. However, BP's financial health is impacted by substantial liabilities, including £77 billion in debt and long-term obligations stemming from the 2010 Deepwater Horizon spill.

The Deepwater Horizon disaster, which occurred in April 2010, resulted in the release of approximately 4.9 million barrels of oil into the Gulf of Mexico. The incident led to severe environmental, economic, and legal repercussions for BP, with cleanup costs, charges, and penalties exceeding $65 billion.

Among the potential acquirers, Shell has shown particular interest in BP's gas and liquefied natural gas (LNG) assets, viewing them as potentially transformational for its portfolio. However, challenges such as cultural integration and political risks have been noted. ExxonMobil and Chevron are currently focused on other acquisitions but may reconsider BP depending on future developments. TotalEnergies appears interested in BP’s gas and renewables assets but is skeptical about the broader acquisition's value. Adnoc, with historical ties to BP, is also considered a potential bidder, aligning with broader UAE investments in the UK.

Following reports of potential takeover interest, BP's shares rose by 1.9% on May 9, 2025. The FTSE 100 index also climbed 0.5%, influenced by gains in BP and optimism over U.S.-China trade negotiations.

Analysts are divided on the feasibility of a BP takeover due to complex integration concerns and anticipated regulatory scrutiny. BP has reportedly begun engaging with UK officials to assess political receptiveness to potential buyers.

Over the past decade, BP has faced significant challenges, including the Deepwater Horizon spill and the loss of assets in Russia due to geopolitical conflicts. Its ambitions to reduce fossil fuel output and invest in renewable energy have faced setbacks, making it vulnerable as a takeover target.

The potential acquisition of BP by a major competitor could have far-reaching implications for the global energy market, potentially reshaping industry dynamics and prompting regulatory scrutiny. As discussions continue, stakeholders will closely monitor developments to assess the potential impact on the energy sector.