ACCC green light for BG Group takeover

Posted November 25, 2015

Curtis Island off Gladstone

Curtis Island

 

A planned $98 billion takeover of BG Group by Royal Dutch Shell has been given the thumbs up by the Australian Competition and Consumer Commission (ACCC) – leaving just two more regulatory hurdles to be cleared for the mega-deal to go through.

Under the deal, Shell is set to become the world’s biggest LNG player and will gain BG’s Queensland Curtis LNG (QCLNG) project.

Unconditional approval for the deal follows earlier clearances obtained from the Brazilian competition authority (CADE) and the European Commission.

Two additional pre-conditional approvals are needed from Australia’s Foreign Investment Review Board (FIRB) and China’s Ministry of Commerce (MOFCOM).

The transaction will also require support from both BG Group and Shell shareholders.

Shell Chairman Jorma Ollila said the takeover was an important transaction for the company.

“By combining BG’s portfolio and skills set with Shell’s capabilities, we can deliver a step change in the growth priorities for both of our companies, accelerating our strategy in plays such as in deep water and liquefied natural gas,” Mr Ollila said.

“And at the same time, this is a springboard to re-shape the combined portfolios. This will better position Shell not only for the recovery in oil prices that we eventually expect, but also make sure that we continue to deliver attractive returns to our shareholders at all points in the cycle.

“Overall, this is a compelling combination and one that we strongly feel will have material benefits for both sets of shareholders …”

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