Shell Exec Exits After CEO Rejects $70 Billion BP Takeover Bid

Shell’s head of mergers and acquisitions has left the company. Greg Gut departed after CEO Wael Sawan blocked an internal proposal to acquire rival BP. The leadership clash occurred in early 2025 and was confirmed by sources to Reuters. It highlights a major strategic divide at the top of the energy giant.

The proposal aimed to seize on BP’s weakened market position. Shell’s executive leadership ultimately deemed the mega-merger unworkable. This rejection signals Shell’s commitment to its current path of shareholder returns over transformative deals.

The Blocked Proposal and Internal Clash

Greg Gut’s M&A team pitched the acquisition to Shell’s top brass. They argued BP’s low share price and leadership uncertainty created a unique opportunity. The deal was framed as a solution to Shell’s own long-term growth challenges.

Shell Chair Andrew Mackenzie was reportedly open to the idea. He saw strategic merit in combining the two British energy titans. However, CEO Sawan and CFO Sinead Gorman firmly opposed the move.

They believed the integration would be a nightmare. The scale of merging two such large companies was seen as a massive risk. It clashed directly with Sawan’s focus on steady cash returns to investors.

Why Shell’s Leadership Said No

CEO Wael Sawan has consistently prioritized share buybacks. He views them as a safer way to deliver shareholder value. In May, he decided buying back Shell stock offered better value than the complex BP acquisition.

CFO Sinead Gorman shared these strategic concerns. The executives believed the deal’s sheer size could derail Shell’s carefully built plans. One investor briefed on the matter noted the strategic window for such a move had likely passed.

The proposed deal was valued around £56 billion. Sawan and Gorman concluded the financial and operational disruption was too great. Their vision focuses on disciplined capital allocation, not empire-building.

Departure and Lasting Strategic Implications

Greg Gut left Shell in September 2025 after more than two decades. He confirmed his departure to Reuters but did not comment on specifics. Shell has since split his responsibilities between two other executives.

The company publicly denied interest in acquiring BP in June 2025. This statement triggered a UK takeover rule. It prevents Shell from making an offer for BP for six months, until December 26, 2025.

Given Sawan’s clear stance, Shell is expected to let this deadline pass. The firm has indicated it has nothing to add to its previous denial. This closes the door, for now, on one of the energy sector’s biggest potential deals.

The failed BP takeover bid and subsequent executive exit underscore a pivotal choice for Shell. The company is firmly choosing financial discipline and predictable returns over a risky, transformative merger to secure its future growth.

Info at your fingertips

Did Shell try to buy BP?

Yes, but only internally. Shell’s M&A team, led by Greg Gut, formally proposed acquiring BP to the company’s top leadership in early 2025. The proposal was rejected by CEO Wael Sawan and CFO Sinead Gorman before any external talks began.

Why did Shell’s CEO reject the BP deal?

CEO Wael Sawan rejected the deal due to its massive scale and integration risks. He believes Shell’s current strategy of share buybacks and smaller acquisitions delivers more reliable value to shareholders than a disruptive mega-merger.

What happens now after the executive’s departure?

Greg Gut’s departure signals the idea is shelved. Shell has restructured his role and publicly stated it is not pursuing BP. The regulatory restriction from their denial expires in December 2025, but Shell shows no interest in reviving the plan.

Could Shell look at other big acquisitions?

It seems unlikely under the current strategy. CEO Sawan has expressed interest only in smaller, tactical deals that complement existing assets. He has explicitly ruled out large-scale M&A that could jeopardize consistent shareholder distributions.

What was BP’s situation when the proposal was made?

BP was seen as vulnerable. Its share price was under pressure and the company faced strategic uncertainty and leadership questions. This created what some inside Shell viewed as a unique acquisition opportunity.

Who were the main figures for and against the deal?

M&A chief Greg Gut and Chair Andrew Mackenzie were reportedly open to the proposal. CEO Wael Sawan and CFO Sinead Gorman were the key figures who opposed and ultimately blocked the acquisition plan.