Shell’s $70 billion takeover offer for UK’s energy firm BG Group has received unconditional merger clearance from the Chinese Ministry of Commerce.
This is the final regulatory clearance that is a pre-condition to the Combination. Other pre-conditional clearances have already been received from the authorities in Australia, Brazil and the European Union.
BG Group’s Chief Executive, Helge Lund said: “Following today’s approval from MOFCOM, all pre-conditional regulatory approvals for the combination have been received and we now move to the next phase. I am pleased that we have continued to deliver a strong operating and safety performance throughout the offer period which is a credit to our teams across the business. The proposed combination has strong industrial logic, particularly in deep water production and LNG, and will accelerate the delivery of value to our shareholders.”
The proposed combination will require support from both BG Group and Shell shareholders.
Commenting on the approval by China, Shell CEO Ben van Beurden said he was delighted Shell now has all the pre-conditional approvals needed to move to the “next important phase.”
He said: “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.”
Offshore Energy Today Staff