LONDON--The U.K. government told BP PLC that it would oppose any
potential foreign takeover of the company because it wants the oil
giant to remain a British company with global clout.
With a market cap of more than $132 billion, BP would be a huge
takeover target--and a big bite for even its largest rivals. But
amid today's low oil prices, speculation has swirled over possible
deal making. Earlier this month, Royal Dutch Shell PLC reached a
deal to buy UK-based BG Group PLC for some $70 billion.
A British government official said Sunday that the U.K.
government told BP it would intervene to prevent any foreign
takeover bid of BP, one of the world's biggest oil companies. It
would also seek to prevent a takeover from Anglo-Dutch giant Royal
Dutch Shell PLC, a potentially more palatable alternative for
London because of that company's British heritage.
BP declined to comment. The dialogue between No. 10 Downing
Street and BP was previously reported Sunday by the Financial
Times.
The disclosure comes less than two weeks before a U.K. general
election. The U.K., and the Conservative-led government of Prime
Minister David Cameron, have been generally supportive of foreign
investment. But foreign takeovers have from time to time become a
political headache for British governments.
The U.K. government has limited ability to block a bid, but it
can intervene when it deems there are public-interest concerns,
such as on issues of national or financial security. The
conversations between British Prime Minister David Cameron's office
and BP happened in recent months, according to a person familiar
with the matter.
"The government talks to a wide range of U.K. businesses, as you
would expect," a spokeswoman for British Prime Minister David
Cameron said. "It is in the UK's interest to have British companies
competing and succeeding at home and abroad."
Write to Jenny Gross at jenny.gross@wsj.com and Justin Scheck at
justin.scheck@wsj.com
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