The intriguing story that ExxonMobil has Royal Dutch Shell (RDS) in its sights will send shivers down the spines of Shell’s senior executives as they plan their strategy for 2009 and beyond. 
It may also give much food for though to those in the European Union who want to keep European hands on key energy resources in the light of Russia’s open flexing of its muscles on Gas and in the Siberian upstream.As the informed article points out there would be few financing problems for ExxonMobil who could comfortably afford to pay a 60% premium to acquire Shell at its current traded stock value. And there could hardly be any financial analysts who would advise clients to turn down such an offer in these straightened times. The Pension Funds and other institutional investors would surely jump at the chnace for a swift return on their hitherto rather depressed RDS holdings.
But the mandarins in Europe will see it in another way. Shell is one of Europe’s biggest corporations and is a keen player across the continent. It is also blessed with some important strategic reserves in its historic producing areas, such as Nigeria, Oman, Brunei and North America. For these assets to be subsumed into ExxonMobil would be a blow not just to European prestige but to security of energy supply.
Given the likely horror in London and The Hague and the equal dismay in Brussels we can expect some swift defensive manoeuvres to be soon under discussion. Prime amongst these has to be the oft trumpeted merger of Shell and BP into one seriously big and European managed corporation. There might even be a part for Total in the scheme – a Shell/BP/Total company would outstrip even ExxonMobil in its strength and influence.
What looks to be certain is that the status quo will not prevail. Shell is not only vulnerable to ExxonMobil put also potentially to predators from the oil producing States – especially Russia and in the Middle East. If Exxon can afford Shell you can be sure that, for example, Gazprom or the Abu Dhabi sheiks could as well! It could be a baptism of fire for Shell’s new CEO Peter Voser!
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I just read the original article, and unless there’s something I’m not seeing, I think you’re jumping the gun by saying that Exxon has RDS in its sights. The only thing I saw referencing Shell was that Exxon had enough money to buy its #1 competitor, Shell, at a 60% premium. Do you have any other source that actually indicates that Exxon is planning this move?
If you check out the article on this site http://www.bloggernews.net/119345 you will see links to a number of articles speculating on the possibility of ExxonMobil launching a takeover bid for various energy companies, including Royal Dutch Shell.
John,
thanks for the link and the reply.
I’d followed the link [that you cite] from the entry and also followed some of its links that you. I didn’t see any of them with any indication that anyone within Exxon was planning this. Not to say it won’t happen, and I’m sure they at least consider every option, but so far, all is looks like is a bunch of analysts showing they can do math.
I pulled these two quotes out of a couple of the original articles.
“But Carol, like most other oil analysts, doesn’t think Exxon will go for one of the big players.”
“Gheit is in the minority of oil analysts, but he’s still convinced Exxon’s target will be one of the big oil firms.”
So it can be interesting to do the speculation, but I contend that the title of this blog entry is very misleading and makes it sound as if there’s already something in the works.
ROYALDUTCH SHELL PLC has been destined by God for takeover by the American Oil Giant, and the present self style management in SHELL knows they have no control over it or anything they can about it because “The Octopus Demon is Scheduled to be cast out from Heavenlies by Angel Network. The marriage between Royal Dutch Petroleum and the British backed Shell Trading and transpot company in 1905 was only to last for 100 years, and the time was up five years ago.In this new year and era, 2010, The Octopus Demon in SHELL knows without its Shell, it is just a sitting “duck” ready to be consumed by the American Oil Sharks. The American Oil Company would sniffed out its competion in Shell more easily because She is better equipped and have all the resources to manage The Shell. 100 years of systematic failures by the ROYAL DUTCH/ SHELL GROUP of COMPANIES makes a new marriage between The AMERICAN OIL GIANT/SHELL PLC inevitable to launch a New Shell fueled by Divine life under a Reasonable management, that overthrows a present ROYAL Hellish Shell mafia, “The OCTOPUS”.
Get more details of the impending take over by contacting The Angel Network
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