Photo caption: Shell logo
Shell’s chief of mergers Greg Gut left the oil major after Chief Executive Wael Sawan and other top executives blocked an internal proposal to buy rival BP this year, the Financial Times said on Tuesday.
Citing people familiar with the situation, the newspaper said Gut and the M&A team pushed for the deal, in which chair Andrew Mackenzie was said to be interested.
But Sawan and finance chief Sinead Gorman felt a deal of that size spelt challenges that could derail their strategy, the paper added.
In a categorical denial of media reports in June, Shell said it had not bid for BP, adding it was bound by British rules that meant such a statement barred it from bidding for BP for the following six months.
CEO Sawan has repeatedly said buying back Shell shares was a better use of money when asked about a potential bid for BP, whose stock has markedly underperformed peers since 2020, when its pivot to renewable energy left it lagging.
Tuesday’s report said Gut had left Shell before the June announcement, adding that Sawan’s opposition suggested the company was unlikely to pursue a deal for BP when the curbs on its ability to bid lift on December 26.
“We have previously made a clear statement on this matter, and we have nothing to add to it,” a Shell spokesperson said.
Reuters also sought comment from Gut on LinkedIn, where his profile showed him still employed by Shell.
=== Reuters ===
