Shell merger with BG Group gets green light from China
Published: 14 Dec 2015
Shell's takeover of BG worth £55bn has recently been cleared by the Chinese Ministry of Commerce. This was the final hurdle obstructing the deal from being complete. China's agreements follows successful backing from Australia, USA, EU and Brazil.
Shareholders at both companies will now decide whether the merger will be completed and determine if the completion could be finalised in early 2016.
The takeover which will create Britain's biggest public company has come under much scrutiny as to whether Shell can justify pursuing this deal at a time when oil prices still remain so low. The oil prices suffered further collapse after the recent Opec meeting leaving trading prices at $37 a barrel.
Shell's chief executive announced; "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. We will now seek approval from both sets of shareholders as we move towards deal completion in early 2016."
The takeover will assist in Shell acheiving the ambitious growth targets implements by Mr Van Beurden and also overtake its' top rival ExxonMobil to become the largest LNBG producer in the world.
However for this deal to be completed it still requires 50.1pc of Shell investors and 75pc of BG's shareholders to vote in favour.