US-based Elliott Investment Management has acquired a stake in bp, reported Reuters, citing a source familiar with the matter.
Elliott aims to enhance shareholder value by pushing bp toward transformative measures, describing Elliott’s stake as "significant”, according to Bloomberg News. Elliott and BP did not provide any comments in regard to the matter.
BP, with a market capitalisation of approximately £69bn, is valued at less than half of its rival Shell at around £161bn.
This valuation comes from LSEG data and highlights the disparity between the two oil giants.
Earlier this week, BP announced its intention to sell a refining site in Germany, aligning with CEO Murray Auchincloss' plans to reduce company costs by at least $2bn by the end of 2026.
Auchincloss, who succeeded Bernard Looney in September 2023, is focused on rebuilding investor confidence, which includes cutting more than 5% of bp's global workforce.
Auchincloss will present his new strategy at an investor day on 26 February 2025. He has already taken important steps to diverge from his predecessor's strategy of moving away from oil and gas.
BP has also warned of a potential $300m decrease in profit quarter-on-quarter due to falling refining margins and the impact of maintenance activities.
This forecast aligns with the pessimistic outlook shared by other global refiners regarding near-term profit improvements.
BP is set to report its fourth-quarter and full-year results on 11 February 2025.
Meanwhile, Elliott, with around $70bn in assets, has made its presence felt as an influential activist investor, having recently advocated for a break-up at Honeywell and acquiring a 3.2% stake in Anglo American, which has become a takeover target of BHP Group.
