OIL giants Shell and Texaco could be set to change the face of UK forecourts by announcing a merger. Rumours have been rife in the city that Shell, with more than 1,900 UK sites, and Texaco, with 1,200 sites, could join forces to take on the supermarket petrol retailers.

The two firms at the centre of the rumours have branded them as speculation, but a Texaco spokeswoman said: 'We always evaluate our options and do talk to other companies, but that is part of routine business.'