Core Viewpoint - Speculation regarding a potential merger between BP and Shell has been ongoing, but Shell has denied any acquisition talks, raising questions about BP's future as a standalone company [1][10]. Group 1: BP's Strategic Shift - In 2020, BP announced a strategy to become a "net-zero company by 2050 or sooner," increasing investments in renewable energy while maintaining oil and gas operations [2]. - The strategy was launched amid the Covid-19 pandemic, leading to BP's first full-year loss in a decade, but the company rebounded with a profit of $7.6 billion in 2021 and $27.65 billion in 2022 due to rising oil prices from geopolitical tensions [3]. Group 2: Leadership Changes - Bernard Looney resigned in September 2023 after less than four years, citing a lack of transparency regarding workplace relationships, leading to Murray Auchincloss stepping in as interim CEO and later being appointed permanently [5][6]. Group 3: Market Performance and Speculation - BP has faced declining annual profits in 2023 and 2024, alongside underperformance in its stock compared to peers, prompting speculation about potential acquisition interest from companies like Chevron, Exxon Mobil, and Adnoc [7]. - Activist investor Elliott built a stake in BP in February 2023, coinciding with Auchincloss's announcement of a strategic reset focusing on oil and gas investments [8]. Group 4: Investor Sentiment - BP's shares have declined by 15% since the strategic reset announcement, indicating investor skepticism about the company's direction [9]. - Auchincloss has asserted that BP remains a strong, independent company, while Shell's CEO has expressed a high threshold for M&A opportunities, favoring share buybacks instead [9].