Shell mergers chief Greg Gut quit after CEO blocked BP bid, FT reports

The Financial Times reported on 'Tuesday that Shell's head of mergers Greg Gut had left the oil giant after CEO Wael Sawan and top executives rejected an internal proposal to??buy rival BP? this year.

Gut and the M&A Team pushed for a BP deal early this year. Andrew Mackenzie, chair of the board, was said to have been interested. However, Sinead and Sawan, finance chief, felt that a large deal could derail the strategy.

Shell denied media reports that it bid for BP in June. It said it was bound to UK rules and, as a result, such a statement prohibited it from bidding for BP during the next six-month period.

When asked about a possible bid for BP whose stock is underperforming its peers, CEO?Sawan repeatedly stated that?buying Shell shares was a more efficient use of money?. BP's stock has been significantly underperforming its peers since 2020 after its pivot to renewable energies left it lagging.

The FT reported on Tuesday that 'Gut left Shell before the announcement in June, and that Sawan’s opposition indicates that Shell 'was unlikely to pursue a BP deal when restrictions on its ability to bid on the 26th of December lift.

Shell has not responded to the request for comment outside of business hours.

Also, I reached out to 'Gut' for a response on LinkedIn. His profile indicates that he remains employed with Shell.

Shell said to FT that it "had previously made a very clear statement" about its lack of interest towards BP and "had nothing to add". (Reporting from Pushkala Aripaka in Bengaluru, Prerna Behdi and Angela Christy; Editing by Rashmi aich and Sonia Cheema).

(source: Reuters)