ADNOC considered acquiring bp following major purchases by IOCs like ExxonMobil, Chevron

(WO) – On Thursday, April 11, Reuters reported that Abu Dhabi National Oil Company (ADNOC), the UAE’s state-owned oil and gas company, previously pursued acquiring Britan’s energy giant, bp.

According to “people familiar with the matter,” discussions didn’t progress farther than initial conversations. Along with political factors, ADNOC decided that the $110.3 billion company wouldn’t fit well into its strategy. Reuters’ undisclosed sources said that ADNOC consulted investment banks, considered purchasing a large stake, and even spoke directly to bp. However, the conversations “didn’t get far.”

While the U.S. oil and gas industry is ripe for consolidation following ExxonMobil and Chevron’s takeovers of Pioneer Natural Resources and Hess Corporation, respectively, European heavyweights haven’t had as much M&A activity.

Analysts have been eyeing bp as a potential takeover target as investors push the company to bring focus back to oil and gas. In Q1 2023, bp announced plans to “roll back” its energy transition strategy in an effort to bring more value to shareholders, much like IOCs such as Shell, Chevron and ExxonMobil.

ADNOC, however, recently unveiled plans to increase oil and gas production, putting the company in position to acquire a smaller global energy company like bp.

This story was originally reported by Reuters.