Shell M&A Chief Resigns After Push to Acquire BP Is Blocked by CEO

By John Donovan

In a significant development at one of the world’s largest energy firms, Shell’s head of mergers and acquisitions, Greg Gut, has resigned following internal opposition to a proposal to take over rival oil major BP. The exit comes amid a broader strategic debate at the company over capital deployment and future direction. 

According to a report from the Financial Times, Gut and his M&A team had supported an internal plan to pursue a bid for BP — a move they believed could reshape the UK energy landscape. Shell’s chair, Sir Andrew Mackenzie, was reportedly open to the idea. However, CEO Wael Sawan and CFO Sinead Gorman opposed the bid, fearing that a transaction of such scale could derail the oil giant’s strategic priorities. 

Although the matter never became public until now, the resignation of Gut — coupled with the timing of Shell’s earlier regulatory statement — suggests internal tensions over the company’s merger strategy. Gut is said to have left Shell prior to the June announcement in which the company categorically denied any active interest in pursuing BP, citing UK takeover rules that imposed a six-month restriction on any potential approach. 

Shell’s Official Position: Discipline Over Deals

 

Shell’s formal stance in June was clear: the company stated it had not made an approach to BP nor engaged in talks about a takeover, and that it was bound by UK takeover code restrictions as a result of the clarification. The statement stressed Shell’s commitment to delivering value through performance and simplification, rather than large, speculative deals. 

Under the City Code on Takeovers and Mergers, issuing such a statement triggers a six-month “standstill” preventing a formal bid unless certain specific conditions are met — including mutual board agreement or a material change in circumstances. That lockdown period is set to expire on December 26, 2025, leading some observers within the industry to speculate about whether discussions could resume. But with Sawan still at the helm, insiders suggest such a move is unlikely. 

Sawan has repeatedly emphasised capital discipline, indicating preferential use of shareholder returns — including share buybacks — versus risky large acquisitions. This reflects a broader corporate strategy favouring smaller, targeted deals or organic growth over transformative mergers. 

BP’s Position and Market Dynamics

 

BP itself has seen its share price lag behind rivals in recent years, especially as it pivoted aggressively toward renewables — a strategy that has generated mixed results and investor unease. This performance contrast may have made BP a tempting target for consolidation in the eyes of Shell’s M&A team, particularly if prices remained comparatively depressed. 

However, BP has been undergoing its own leadership realignment and strategic recalibration, slowing or reversing some earlier commitments to net-zero goals while attempting to stabilise profitability. This evolution in BP’s outlook has altered the competitive calculus, possibly reducing the urgency for a consolidation bid. 

Industry Implications: Bigger Rivals, Strategic Shifts

 

The aborted bid and ensuing departure of Shell’s M&A chief highlight the wider strategic tensions facing legacy oil companies. Both Shell and BP have spent much of the past half-decade balancing commitments to decarbonisation with the enduring need for profitable hydrocarbon operations — a balancing act that has proven challenging across the sector. 

Shell’s approach under Sawan — emphasising financial returns and cautious investment — contrasts with peers like ExxonMobil and Chevron, which have pursued more aggressive asset acquisitions and expansions in their traditional oil and gas portfolios. Analysts argue that, over time, Shell’s more conservative merger posture could leave it at a competitive disadvantage if rivals secure scale and reserves more aggressively. 

Looking Ahead

 

With the takeover restriction soon to lapse, all eyes will be on Shell’s next strategic moves. Will the company revisit consolidation opportunities, or double down on financial discipline and incremental growth? The departure of a senior deal-maker underscores that, within Shell’s boardroom, there is no consensus — and that management philosophy will likely shape how the energy giant navigates an increasingly complex market.

For now, Shell’s official position remains unchanged, with the company reiterating its earlier statement that it has “nothing more to add” regarding the potential acquisition of BP. 

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