According to latest reports, Royal Dutch Shell has agreed to buy BG Group, the UK’s third biggest energy organization, for an aggregate of £47bn in one of the biggest energy Mergers of the most recent 20 years.
BG Group was created in 1997 when British gas demerged into two different organizations; BG Group and Centrica.
After demerged into two different organisation, BG Group started taking control of exploration and production while Centrica taking control of the UK retail business.
According to the statement of Ben van Beuden (Shell CEO), BG and Shell are great fit and this transaction fits with the organisation’s strategy.
As understood the company’s strategic move, BG will accelerate Shell’s financial growth strategy, especially in deep water and liquefied Natural Gas.
As Helge Lund, CEO of BG stated, the offer from Shell delivers attractive returns to shareholders and has solid key rationale.
However, the mega- merger comes in the midst of a droop in oil prices.
The deal, which still needs to be approved by both firms’ shareholders, will see BG Group shareholders get 383 pence in cash, plus 0.4454 Shell B shares for each BG share.
Royal Dutch Shell plc (Shell) is an independent Oil and Gas company. The Company is engaged Worldwide in the principal aspects of the oil and gas industry and also has interests in chemicals and other energy-related businesses.
The Company operates in three segments: upstream, Downstream and Corporate.
