Adnoc reportedly looked at buying BP

Initial discussions between Adnoc and BP were hindered by concerns regarding the alignment of BP with Adnoc's strategic objectives.

Abu Dhabi National Oil Company (Adnoc) has expressed interest in acquiring BP in a multi-billion pound takeover bid, joining a trend of acquisition bids within the energy sector, reported The Guardian. This move follows ExxonMobil's recent agreement to purchase Hess Corporation.

Initial discussions between Adnoc and BP were hindered by concerns regarding the alignment of BP with Adnoc's strategic objectives. The complex political and legal implications of the deal added further complications, given Adnoc's status as the state oil company of the UAE and BP's economic significance to the UK.

Despite their history of collaboration, including joint ventures in the Middle East and considerations for investment in an Israeli gas company prior to the Israel-Hamas conflict, the Adnoc-BP takeover talks have not progressed successfully.

The potential consolidation and takeover bids within the energy industry have raised concerns, particularly amidst the transition to renewable energy sources. The acquisition of BP by a foreign entity could have significant ramifications for the UK economy and government, given BP's status as one of the country's largest companies, its substantial tax contributions, and its role in supporting the London Stock Exchange.

BP has emphasized its commitment to maintaining its presence in the UK, citing ongoing projects in the North Sea as evidence of its continued investment in the region.

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