The hottest BP faces the threat of being acquired

2022-08-07
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BP faces the threat of being acquired by potential acquirers or shell group

with the failure of measures such as "reinforced concrete cover", "top hat" and "top kill law", BP's share price has fallen continuously. The US Department of justice also announced on the 1st that it has officially launched a civil and criminal investigation against BP. Overseas media believe that the large evaporation of market value and the subsequent high compensation costs will make the famous oil and gas producer have to sell some assets in the future, and it is very likely to become the target of acquisition

on April 20, a BP offshore drilling platform in the Gulf of Mexico caught fire, killing 11 workers. The $365million drilling platform sank to the sea floor and triggered an oil spill. So far, millions of gallons of crude oil have leaked into the Gulf of Mexico. Since the oil spill, the company's share price has fallen by one third, the market value has evaporated by nearly 70billion US dollars, the scientific management level has been improved, and the company's credit rating has also been lowered

analysts believe that this is enough to attract the interest of acquirers. In addition, BP may be forced to sell some of its most valuable assets, including shares in the largest oil field in the United States, to raise funds to cover the cost of plugging, fines and laws

Douglas Auber, CEO of the oldest American oil fund "oil resources company", said that BP's 26% stake in the Prudhoe Bay oil field on the north slope of Las Vegas and some other assets in Afghanistan will gradually decline, which may attract the interest of buyers such as CNPC, Western oil company and Hess company. In a report, Norwegian bank analyst Guzman Haller said, "BP is 10-20% likely to be acquired. The only potential acquirer with similar scale and global operation is shell group."

some overseas media reported that BP and shell had discussed the merger for many times before. The two companies also discussed the divestiture of BP's refining and marketing business in 2004 to eliminate possible antitrust concerns

Credit Suisse said in its report that BP's oil pollution clean-up costs may total $15billion to $23billion, plus $14billion in compensation. The risk of BP's dividend reduction is increasing. However, there are also reports that some hedge funds and individual investors have bought BP's shares, betting that the share price will rebound after the recent setback. On the 2nd, BP shares rose 3.12% to close at US $37.66 in the New York market. In the early trading of the European market on the 3rd, the company's share price also rebounded. As of 18:15 on the 3rd Beijing time, BP's share price on the London Stock Exchange was reported at 443 pounds, up 3.08% from the previous trading day

in addition, analysts believe that the BP oil spill will have a huge impact on the local economy in the Gulf of Mexico. Mark Zandi, chief economist of Moody's, said that tourism, fishing, shipping and drilling industries constitute the pillars of the local economy. He said that every day, the risk of oil spill affecting these industries will increase. As the above-mentioned industries are widespread in the local economy severely hit by the recession, the direct impact of the catastrophic oil spill on these industries will be amplified. If these industries are damaged, the economy of the region will suffer a heavy blow

US Attorney General Eric Holder announced on the 1st that the federal government has launched a criminal and civil investigation into the oil spill in the Gulf of Mexico. It is said that the investigation will cover all aspects of the oil spill, including the deaths of 11 workers, but he refused to explain the specific direction of the investigation, because doing so may cause some "unnecessary slander". However, he disclosed that whether the relevant parties made false statements on the stability of the downstream finished material market is also one of the investigation directions

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