BP Acquisition Chances Dim After $18.7B Settlement
LONDON — BP plc is unlikely to be acquired now that it reached an $18.7-billion settlement with five states and 400 local government entities regarding the 2010 Deepwater Horizon accident in the Gulf of Mexico, said CEO Bob Dudley.
Several media reports earlier this year pointed to the possibility of BP being acquired by Exxon Mobil Corp., especially following Royal Dutch Shell plc’s $70 billion acquisition BG Group plc.
Some industry experts believed BP plc would be a more attractive target without a major lawsuit hanging over its head. In addition, many oil stocks have plunged to multi-year low stock prices this year due to the sharp decline in oil prices, making them more attractive to acquirers focused on long-term prospects for growth.
But Dudley quashed any acquisition rumors.
"As a result of the settlement in the U.S. it is actually less likely that someone would want to acquire BP and it is certainly not our intention to put the company up for sale," he told reporters.