Bloomberg News reports that Shell is evaluating the merits of acquiring BP.

Bloomberg News, citing sources familiar with the situation, reported that Shell Plc has been working with advisers on evaluating a possible acquisition of BP Plc. However, it is still waiting for further declines in oil and stock prices before deciding if it will pursue a bid.

Reports said that the oil major had been discussing with its advisors the feasibility and merits a takeover in recent weeks. The report added that any final decision would likely depend on the performance of the rival's share price.

Bloomberg News reported that it may wait for BP or another potential suitor to initiate contact. Its current work can help prepare for this scenario.

The report said that Shell is still in the initial stages of its merger discussions and may choose to focus more on bolt-on acquisitions and share buybacks than a megamerger.

Shell's spokesperson, when asked to comment on the report, said: "As we said before many times, we are focused on capturing value within Shell by continuing to focus our efforts on performance and discipline.

BP didn't immediately respond to a comment request.

(source: Reuters)