Business
Shell to take over BP? Is it about to happen?
FOR the past six months, financial newspapers in the UK and around the world have been focused on two major oil companies – Shell and BP. Today, however, the two companies are reportedly engaged in serious discussions. One company has declined to comment, while the other has remained silent. The British press is generally supportive of a takeover by Shell, emphasizing that as a British company, Shell represents a “Jewel in the Crown” that should remain under British ownership rather than being acquired by a foreign entity.
Meanwhile, BP is struggling to keep pace with its peers and has been divesting parts of its core business, such as Castrol lubricants. BP may have made a critical error by moving too quickly away from oil and gas towards alternative energy sources like wind and solar, aiming to lead the energy transition. This shift left the company lagging and weakened, making it vulnerable to acquisition. Over the past 12 months, BP’s share price has dropped by 22 percent. At its peak, BP was so powerful it could influence governments and interfere in domestic politics in some parts of the world. Today, all of that is history, as BP is now searching for potential buyers. Shell is a British multinational oil and gas company listed on the London Stock Exchange, making it a good fit to acquire BP due to their similar cultures. The main difference is that Shell started as an oil trading company, while BP, through the British Empire, acquired oil and gas fields in some of the richest hydrocarbon countries in the world, including the Arabian Gulf, starting in Bahrain, Iran, Iraq, and Kuwait.
Interestingly, BP chose not to invest in Kuwait, claiming it already had too much oil under its control. Shell, however, has stated it has no intention of making a takeover offer for BP and has denied claims of being in active merger talks. It may be taking its time to decide, possibly waiting for other companies to submit bids before evaluating its own offer. Given the similarities and synergies in place, Shell is well-positioned to make an offer. If the acquisition is completed, Shell would become the largest oil company, surpassing ExxonMobil and Chevron. BP’s current market value is estimated at around $80–83 billion, while Shell is valued at approximately $200 billion, nearly three times BP’s worth.
How far and for how long the talks or speculation surrounding a potential BP takeover will continue remains uncertain. The ongoing rumors are creating volatility and may further weaken BP’s position, potentially contributing to a decline in its market value. Other oil giants, such as the Abu Dhabi National Oil Company (ADNOC), are reportedly exploring the possibility of acquiring parts of BP. However, ADNOC appears more interested in acquiring specific segments of the company rather than taking over BP as a whole. BP, as a global energy giant, does not align entirely with ADNOC’s structure.
It is significantly larger, with a wide array of operations and an expansive international footprint, which would make full acquisition and management a difficult task. In a few days, we may learn the outcome of these discussions and whether Shell intends to move forward with a takeover. BP appears poised for acquisition, but it needs the right partner, one capable of unlocking the full benefits of potential synergies. Undoubtedly, Shell is the most prepared and best positioned to take over. For other international oil companies, acquiring and managing one of the historic “Seven Sisters” would be a significant challenge. Shell, on the other hand, seems to be taking its time to determine the right price before making a move to acquire its longtime peer and competitor.
By Kamel Al-Harami
Independent Oil Analyst
Kuwait enhances Stock Exchange access for emerging firms with amendments to listing rules.
KUWAIT CITY, July 1: Kuwait’s Capital Markets Authority (CMA) has officially launched a new regulatory environment to support the listing and trading of emerging companies on the Kuwait Stock Exchange (KSE), in cooperation with Boursa Kuwait. The initiative includes the creation of a dedicated platform for these companies, alongside key amendments to existing listing rules.
In a statement released on Tuesday, the CMA confirmed that the move is part of broader efforts to adopt international best practices, promote capital market development, diversify investment tools, and enhance both market competitiveness and transparency — all aimed at bolstering investor protection.
The approved amendments focus on strengthening listing standards by requiring companies to maintain certain conditions, including minimum thresholds for free float shares and their market value. These measures are designed to improve liquidity and ensure sustained compliance with regulatory obligations.
The Authority emphasized that supporting emerging companies is crucial to driving economic growth and aligns with Kuwait’s broader strategic vision. The newly launched market will offer an attractive financing environment for smaller and growing enterprises while providing investors with fresh opportunities governed by high transparency standards.
The regulatory framework is the result of a comprehensive study conducted by the CMA, which formed the basis for drafting specific rules to govern the emerging companies market. The platform is intended to serve as both a support system for these businesses and a dynamic investment space in line with global benchmarks.
The CMA also underscored the importance of continuously evolving the rules that govern listing conditions. This includes safeguarding investor interests by removing companies that fail to meet their obligations and ensuring adequate liquidity by enforcing minimum requirements for free float shares in both the primary and secondary market segments.
Additionally, the Authority reaffirmed its commitment to enhancing executive regulations that protect investors and empower small shareholders to actively participate in corporate decision-making processes.
This latest move is seen as a significant step toward further modernizing Kuwait’s financial sector and creating a more inclusive and diversified capital market landscape.
The Kuwait government approves tougher measures to tackle financial crimes.
KUWAIT CITY, June 30: Kuwait is intensifying efforts to combat money laundering and terrorist financing by enhancing its legislative framework, announced Minister of Finance and Minister of State for Economic Affairs and Investment Noura Al-Fassam on Monday.
The minister spoke in a statement issued by the Ministry of Finance following the publication of Decree Law No. (76) of 2025 in the official gazette, Kuwait Today. This decree introduces important amendments to Law No. (106) of 2013, reflecting Kuwait’s integrated government efforts to strengthen measures against financial crimes.
During the Cabinet meeting on June 17, the draft of the amended decree law was approved, underlining Kuwait’s commitment to raising the effectiveness of the national response to money laundering and terrorism financing. The amendments align with the requirements of the Financial Action Task Force (FATF) and relevant international standards.
The new decree law includes two significant amendments:
- Article One replaces Article (25) of Law No. (106) of 2013, empowering the Council of Ministers, upon the recommendation of the Minister of Foreign Affairs, to issue necessary decisions to implement United Nations Security Council resolutions related to terrorism, terrorism financing, and the proliferation of weapons of mass destruction under Chapter VII of the UN Charter. These decisions will take effect immediately upon issuance, consistent with Security Council Resolution No. 1373 of 2001. The executive regulations will define the rules for publishing these decisions, appealing them, authorizing the release of frozen funds for essential living expenses, and managing such assets.n
- Article Two adds a new Article (33 bis) to Law No. (106) of 2013, stating that any violation of decisions issued under Article (25) will result in fines ranging from 10,000 to 500,000 Kuwaiti dinars per violation. This penalty complements any additional sanctions imposed by regulatory authorities on financial institutions or designated non-financial businesses.n
The Ministry emphasized that these amendments support the National Committee for Combating Money Laundering and Terrorism Financing by broadening its powers to apply targeted financial sanctions in compliance with FATF standards. This includes the mandatory freezing of assets belonging to individuals and entities listed locally as terrorists, effective immediately upon decision issuance.
Furthermore, the amendments enable the Committee to impose fines on violators and require publishing the national list of designated terrorists on the Committee’s official website, enhancing transparency and meeting international obligations.
Minister Al-Fassam concluded that the updated legislative measures reaffirm Kuwait’s strong commitment to fighting financial crimes, safeguarding national security and stability, and fulfilling its global responsibilities.
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