Royal Dutch Shell was reported by the Wall Street Journal to be in early-stage talks to acquire its British rival BP in a deal valued at approximately $80 billion. The discussions, described as active but preliminary, would represent the largest oil merger in a generation, potentially creating a UK-based energy giant with a combined market capitalization exceeding $200 billion. BP was said to be carefully considering the approach. Following the report, BP's shares surged by around 8%. However, Shell quickly issued multiple denials stating that no talks or takeover discussions with BP are taking place, and it has no intention of bidding for BP. The conflicting reports have led to market volatility, with BP shares initially rising on the acquisition speculation before moderating after Shell's denial. Neither company confirmed the talks, and the situation remains unresolved.