Shell M&A Chief Exits After BP Takeover Proposal Rejected

Shell plc’s head of mergers and acquisitions, Greg Gut, has left the company following internal disagreements over a proposed takeover of rival energy giant BP, according to a report by the Financial Times. The departure highlights growing strategic tensions within Shell’s leadership as the company navigates consolidation pressures and long-term positioning in the global oil and gas sector.

The Financial Times reported that Gut’s exit was directly linked to senior management’s decision to block an internal proposal to acquire BP earlier this year. The ambitious deal, had it moved forward, would have marked one of the largest mergers in the history of the energy industry, creating a dominant force across upstream, downstream, and global trading operations. However, Shell’s chief executive Wael Sawan and other top executives ultimately rejected the plan, citing concerns around execution risk, valuation, and strategic priorities.

Sources familiar with the matter indicated that the proposed acquisition sparked extensive internal debate, underscoring differing views on how aggressively Shell should pursue large-scale consolidation. While some executives reportedly saw the BP deal as a rare opportunity to reshape the competitive landscape of the oil and gas industry, others viewed it as an unnecessary distraction at a time when Shell is focused on capital discipline, shareholder returns, and its energy transition strategy.

Greg Gut, who played a key role in shaping Shell’s mergers and acquisitions strategy, had been instrumental in evaluating major deal opportunities. His departure suggests the rejection of the BP proposal carried broader implications beyond a single transaction, potentially reflecting deeper strategic realignments within the company’s leadership team.

Shell and BP, both listed on major global exchanges, remain under pressure from investors to balance profitability from fossil fuels with investments in low-carbon energy. Industry analysts note that while mega-mergers can deliver scale and cost synergies, they also carry regulatory, operational, and political risks—particularly in an era of heightened scrutiny over energy market concentration and climate commitments.

Shell has not publicly commented on Gut’s exit or the specifics of the BP proposal. However, the episode underscores the cautious approach Shell’s leadership is taking toward transformational deals as it prioritizes stability, disciplined growth, and long-term shareholder value in a rapidly evolving energy landscape.