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

A report suggesting multinational oil company Shell is in early talks to acquire fellow gas giant BP sent shockwaves through Houston's energy industry Tuesday-but Shell is firmly denying any such discussions are underway.