U.K. Tells BP it Would Oppose Foreign Takeover

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 [e-mail] and Justin Scheck at [e-mail]

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B03MLX29

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B03MM408

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7802591070

Access Investor Kit for Royal Dutch Shell PLC

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7802592060

Subscribe to WSJ: http://online.wsj.com?mod=djnwires