Shell-Mex and BP

Shell-Mex and BP Ltd was a British joint marketing venture between petroleum companies Royal Dutch Shell (Shell) and British Petroleum (BP). It was formed in 1932 when both companies decided to merge their United Kingdom marketing operations,[1] partly in response to the difficult economic conditions of the times. As basic principle of finance, markets are informed & share price accumulates impacts of major events in business. In this assignment, we will assess the share price movement of two large size companies, BP and Shell and will understand the reasons of the trend and changes in share price of these companies. British Petroleum Company Limited (BP) and Royal Dutch Shell (Shell) both are oil and gas extraction companies. Companies are one of largest organizations in their industry and are operating in different countries.

Shell Mex House, home of Shell-Mex and BP Ltd


The parent organisations de-merged their United Kingdom marketing operations in 1976. The announcement was as follows:

Since 1932 the products of the Companies of the Royal Dutch/Shell Group and of The British Petroleum Group have been marketed in the UK through the agency of Shell-Mex and B.P. Ltd. In that year the company's business amounted to about 3 million tons, out of a total UK market of some 7 million tons.

The activities of this most successful enterprise have extended greatly over the years. In 1970 Shell-Mex and B.P. Ltd. supplied 40 million tons of the UK petroleum market, amounting to a total of 100 million tons.

In the majority of countries outside the UK. Shell and BP have always each marketed their products through their own entirely separate organisations and it has been decided that Shell and BP marketing operations in the UK should now be brought more into line with this pattern over the next 4-5 years.

Since 1966 the Shell and the BP Service Station networks have been managed by separate sales organisations within Shell-Mex and B.P. It is now proposed to extend this 'brand streaming' progressively to cover all products and all market sectors. This will ultimately lead to the establishment of two viable marketing organisations within Shell-Mex and B.P. thus facilitating the termination of the agency agreement.

The National Benzole Company will continue to trade under the National brand and will form part of the BP marketing organisation.

The Supply, Storage and Delivery functions, and the Computer and other services, will be the object of further detailed study once brand streaming of direct trade is substantially complete and a plan for the treatment of Authorised Distributors is agreed. Should it be decided that these functions should continue for a period after the transfer of the sales activities, then these will continue to be carried out by Shell-Mex and B.P.

The employees of Shell-Mex and B.P. will be redeployed within the separate marketing organisations and redundancies will not arise as a result of this re-organisation.

The company's head offices were at Shell Mex House on London's Strand.

Other companies acquired by Shell-Mex and BP Ltd
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References
  1. Reference and contact details: GB 1566 SMBP Title:Shell-Mex and BP Archive Dates of Creation: 1900-1975 Held at: BP Archive GB 1566 SMBP
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