Royal Dutch Shell on Wednesday announced a mega takeover of British rival BG Group worth £47 billion, as the pair consolidate in a sector battered by sliding oil prices.
The deal, approved by the BG board, is worth the equivalent of $70 billion or 64 billion euros.
"The boards of Shell and BG are pleased to announce that they have reached agreement on the terms of a recommended cash and share offer to be made by Shell for the entire issued and to be issued share capital of BG," said a statement issued by the Anglo-Dutch group.
The offer represents a premium of about 50 percent compared with BG's closing share price on Tuesday, costing Shell "approximately £47.0 billion" for its rival, the statement added.
"The result will be a more competitive, stronger company for both sets of shareholders in today's volatile oil price world," Shell chairman Jorma Ollila said in the release.
BG chief executive Helge Lund said the deal "delivers attractive returns to shareholders and has strong strategic logic".
He added: "BG's deep water positions and strengths in exploration... will combine well with Shell's scale, development expertise and financial strength."