Reuters have reported that Abu Dhabi National Oil Company (ADNOC), the UAE’s state-owned oil and gas company, previously pursued acquiring Britain’s energy giant, bp.
According to “people familiar with the matter,” discussions didn’t progress farther than initial conversations. Along with political factors, ADNOC decided that the $110.3 billion company wouldn’t fit well into its strategy. Reuters’ undisclosed sources said that ADNOC consulted investment banks, considered purchasing a large stake, and even spoke directly to bp. However, the conversations “didn’t get far.”
While the U.S. oil and gas industry is ripe for consolidation following ExxonMobil and Chevron’s takeovers of Pioneer Natural Resources and Hess Corporation, respectively, European heavyweights haven’t had as much M&A activity.
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