Shell: Shareholders back BG takeover

GMT 15:38 2016 Wednesday ,27 January

Arab Today, arab today Shell: Shareholders back BG takeover

Shell investors give the green light to its mega-takeover of smaller rival BG Group
London - AFP

Anglo-Dutch energy major Royal Dutch Shell said Wednesday that its investors had given the green light to its mega-takeover of smaller rival BG Group.

The £47-billion deal was announced in April and has been cleared by regulators, but has been dogged by speculation in recent months owing to collapsing oil prices.

Shell said in a statement however that its shareholders have voted 83 percent in favour of the transaction at a general meeting in The Hague in the Netherlands.

"Shell shareholders expressed their support for the recommended combination with BG Group plc by carrying the resolution to approve and implement the transaction," the company said in a statement.

The two energy companies are still waiting for the go-ahead from BG's shareholder meeting which is scheduled for Thursday.

Shell chief executive Ben van Beurden said he was "delighted" with Wednesday's outcome.

"Our immediate focus is on the successful completion of the transaction and we now await the results of tomorrow’s BG shareholder vote,” van Beurden said in the statement.

If BG investors approve the deal on Thursday then the takeover will be completed on February 15.

The takeover is intended to strengthen Shell's position in the liquefied natural gas (LNG) market in a context of tough market conditions.

Oil prices faced a rapid descent this month -- building on a slump stretching back to mid-2014 -- on stubborn concerns over the global supply glut.

The market has also collapsed on concerns over the strong dollar and weak crude demand growth across the faltering world economy -- particularly in top energy user China.

Crude futures had plunged last week to 12-year lows below $27 per barrel, but rebounded Friday on hopes of eurozone and Japanese economic stimulus measures that would stimulate energy demand.

They resumed their slide Wednesday as traders awaited US energy stockpiles data expected to shine more light on the global glut.


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