Shell In Talks To Acquire BP In Blockbuster $80 Billion Deal

European energy giant Shell is in early talks to acquire BP, another European energy giant, in what would be the largest oil deal in a generation. The potential deal would create one of the biggest energy companies in the world, allowing Shell to challenge larger competitors like Exxon Mobil and Chevron. BP is valued at around $80 billion, and a deal could end up being the largest corporate oil deal since the $83 billion megamerger that created Exxon Mobil. Shell is coming into the acquisition talks from a position of strength, with its stock outperforming BP in recent years. BP has struggled with management upheaval, operational disasters, and a failed push into renewable energy. Activist investor Elliott Investment Management has pushed for changes at BP, making it vulnerable to a takeover bid. A deal would take years of integration, but could give Shell's global trading business greater reach and bolster its dominance in areas like liquefied natural gas. Acquiring BP would also offer an opportunity for Shell to spread costs over a larger operating base and box out rivals. The potential deal is part of a wave of M&A activity across the energy landscape as producers look to achieve greater economies of scale. In response to the news, BP stock spiked 10%, erasing all losses since Liberation Day, and the rest of the energy sector is also trading higher.