LONDON, U.K.: British oil giant Shell has denied reports that it is in talks to acquire rival oil company BP.

The Wall Street Journal has reported  that Shell was engaged in "early stage talks" to buy BP, citing unnamed sources familiar with the situation. However, in a statement to the London Stock Exchange, Shell firmly rejected the claim.

"In response to recent media speculation, Shell wishes to clarify that it has not been actively considering making an offer for BP," the company said. "It confirms it has not approached BP, and no talks have taken place regarding a possible offer."

Shell has repeatedly dismissed rumors of a takeover bid, emphasizing that its focus remains on streamlining and simplifying its operations.

Some market analysts have said BP could be an appealing acquisition target. The company's recent decision to pull back from its renewable energy transition plan has left its stock undervalued compared to other major oil firms.

BP is also still dealing with the long-term fallout from the 2010 Deepwater Horizon disaster, which killed 17 workers and led to billions in compensation and cleanup costs in the Gulf of Mexico.