Latest news with #Trauber
Yahoo
10-06-2025
- Business
- Yahoo
BP Takeover Appears Unlikely Due to Size and Complexity
BP plc's BP potential takeover appears highly unlikely at present, according to senior bankers at Moelis & Co., who cite the British oil major's vast size and operational complexity as major barriers to acquisition, per a Bloomberg report. Speaking to Bloomberg, Stephen Trauber, Moelis Chairman and Global Head of Energy and Clean Technology, indicated that there is no obvious buyer for BP at present, especially not from the United States. He added that even on a global scale, few potential acquirers see BP's assets as essential. Shell Plc SHEL is seen as the most compatible acquirer in terms of asset synergies and regulatory feasibility, according to Trauber. However, Shell's earlier shift toward traditional oil and gas, and its current stronger market positioning make a deal less attractive from its side. That said, Trauber acknowledged that there is a good chance of a tie-up in the future, particularly if BP's valuation remains subdued and Shell continues to strengthen its balance sheet. In such a scenario, strategic alternatives may need to be reassessed. BP's $20 billion divestment plan is encountering headwinds, with its lubricants unit, Castrol, standing out as a particularly difficult asset to offload. According to Moelis, the business has a narrow pool of potential buyers, making a successful sale uncertain, even under competitive conditions. The company may also consider selling its high-quality oil assets in the United States that may attract strong interest. However, such a move could trigger broader concerns about BP's future strategy, as highlighted by Moelis Managing Director Muhammad Laghari. For now, the consensus among energy dealmakers is that a BP takeover remains a distant prospect. While strategic realignments and market dynamics could change the picture in the future, BP's scale, asset mix and valuation challenges make any near-term acquisition highly improbable. BP currently carries a Zack Rank #5 (Strong Sell). Investors interested in the energy sector may look at a couple of better-ranked stocks like Subsea 7 S.A. SUBCY and Energy Transfer LP ET. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Energy Transfer and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here. Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore. The Zacks Consensus Estimate for SUBCY's 2025 EPS is pegged at $1.31. The company has a Value Score of A. Energy Transfer is poised to benefit from long-term fee-based commitments. It is also focused on expanding operations through organic and inorganic initiatives. The firm is looking for solutions to meet growing energy demands from additional demand centers through its pipeline network. Energy Transfer's systematic investments should boost its total fractionation capacity at Mont Belvieu and raise its top line. The Zacks Consensus Estimate for ET's 2025 EPS is pegged at $1.44. The company has a Value Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP) : Free Stock Analysis Report Energy Transfer LP (ET) : Free Stock Analysis Report Subsea 7 SA (SUBCY) : Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Mint
09-06-2025
- Business
- Mint
BP Takeover Would Be a Longshot Due to Size and Complexity, Moelis Bankers Say
(Bloomberg) -- The chances that a rival oil company will take over BP Plc are slim right now, even as peers have been running the numbers, because of the firm's size and complexity, said bankers from Moelis & Co. 'We can't identify anybody in the US that would be a buyer,' Moelis Chairman and Global Head of Energy and Clean Technology Stephen Trauber said in an interview in London on Monday. 'We don't really see any others globally that are buyers that view the assets as must-have.' Shell Plc is 'probably the one that fits the best' with BP from an asset and regulatory perspective, Trauber said. Bloomberg reported last month that the company has discussed the merits of a takeover with its advisers, he said such a deal would still be a unlikely. Shell began its pivot back to oil and gas from clean energy much sooner than BP, putting it in a stronger position today than its London-based rival. 'I think Shell sees their way back much quicker than BP does,' Trauber said. 'So why dilute that upside?' READ: Fifteen Years of BP Losing Out to Shell At some point in the future, when Shell has further improved its valuation and balance sheet and 'if BP still sits where they sit,' that could be a better time to make a transaction happen, Trauber said. 'At some point you've got to think about all of the options if you don't get the momentum in your share price that you want to see,' he said. But until then, it's a longshot for anyone to take out BP any time soon, Trauber said. Meanwhile, BP's $20 billion divestment program faces challenges. The biggest single potential asset disposal — lubricants unit Castrol — has 'a limited universe of potential buyers,' Moelis Managing Director Ali Hassen said. 'So it's not a done deal, even if they run a process that is pretty competitive.' If BP were to try to sell its portfolio of high-quality oil assets in the US, there would be lots of interest, but a deal on that scale could raise questions about the future of the rest of the company, Moelis Managing Director Muhammad Laghari said. 'The bar is going to be very high on separation, because then the question is going to be: What's left over?' Laghari said. More stories like this are available on
