Abu Dhabi National Oil Company (ADNOC) has opted not to mount a takeover bid for BP. The state-owned business, which is the UAE's largest oil company, had recently been considering an acquisition of the London-listed supermajor, but the deal did not get past preliminary discussions, Reuters reported. People familiar with the matter explained that the decision came down to the firm valued at £88 billion not aligning with ADNOC's current strategy.

ADNOC and BP reportedly held meetings recently with the former seeking advice from investment banks on a potential deal. All options were considered when assessing a takeover, one source said, including buying a large stake in the supermajor. It is understood that talks "didn't go far," one source said.

However, it has been reported that BP has been one of many firms that ADNOC has considered taking over. Analysts and investors have said that BP could be a potential takeover target after underperforming compared to its peers in recent years. BP has been outlining plans to slash oil production and ramp up renewables rollout, compared to its rival Shell.