Shell wins Chinese clearance for BG takeover

GMT 09:17 2015 Monday ,14 December

Arab Today, arab today Shell wins Chinese clearance for BG takeover

Shell's vast takeover of British rival BG Group
London - AFP

Energy major Shell's vast takeover of British rival BG Group has won approval from the Chinese government, it said Monday.

Shell's £55-billion (US$84-billion, 79 billion-euros) acquisition of BG Group had already been cleared by authorities in Australia and Brazil, as well as the European Commission.

"Royal Dutch Shell plc today announced that its recommended combination with BG Group plc has received unconditional merger clearance from the Chinese Ministry of Commerce (MOFCOM)," the group said in a statement.

"Following previously announced approvals in Brazil, the EU and Australia, MOFCOM clearance marks the final pre-conditional approval required for the combination."

The deal is aimed at helping Shell boost its flagging output thanks to BG's strong position in liquefied natural gas (LNG), a cleaner alternative to coal and nuclear energy.

“I am delighted we now have all the pre-conditional approvals needed to move to the next important phase,” added Shell chief executive Ben van Beurden.

"This is a strategic deal that will make Shell a more profitable and resilient company in a world where oil and gas prices could remain lower for some time.

Shell, which will now seek approval from both sets of shareholders, remains on track to complete the deal in early 2016.


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