Elliott Management Takes Significant Stake in BP

Updated: 22:00 GMT, 13 February 2025

Activist investor Elliott Management has gained significant influence in BP, becoming the company's third-largest shareholder with a stake valued at nearly £4 billion.

The New York-based hedge fund, known for its aggressive investment strategies, has acquired close to a 5% stake, amounting to approximately £3.8 billion. This acquisition positions Elliott behind only BlackRock and Vanguard, who hold stakes of 9% and 5% respectively.

In light of BP's recent announcement of declining profits—the lowest since the pandemic—CEO Murray Auchincloss has promised a ‘fundamental reset’ of company strategy. As BP faces increasing scrutiny over its focus on renewable energy, Elliott is expected to advocate for a shift away from this direction.

Reports suggest that Elliott is urging BP to reduce its spending on renewable energy initiatives and to divest a major portion of its green assets. This comes as Elliott's leadership believes that BP's current value is ‘profoundly’ undervalued in the market. This perspective could lead to significant changes in BP's operational approach.

In addition to strategizing around BP's expenditures, Elliott may seek to install corporate governance changes, potentially pushing for the resignation of chairman Helge Lund. This move illustrates the intensity of Elliott's involvement and their intent to reshape BP's future.

Elliott's influence could guide BP toward a more traditional oil and gas focus, steering away from its recent commitments to renewable projects. Their stance resonates amid discussions on whether companies should prioritize immediate returns to shareholders over long-term sustainability goals.

Conclusively, the dynamics within BP are set to evolve as Elliott Management drives discussions about spending and divestment, reflecting broader trends in investment approaches towards established energy firms.

Elliott, BP, investment