British oil giant Shell is denying reports that it is in talks to buy rival BP. The Wall Street Journal on Wednesday said Shell was holding “early stage talks," to acquire its smaller rival, citing people familiar with the matter.

A deal between the two has long been rumoured though it is thought that British shareholders would be unhappy about the prospect.

A deal would be a landmark combination of two supermajor oil companies. Shell issued a formal stock exchange denial of takeover talks.