Royal Dutch Shell plc has announced that its recommended combination with BG Group plc has received unconditional merger clearance from the Brazilian competition authority (CADE), satisfying the first of the pre-conditions to the combination.
The unconditional clearance follows CADE’s initial approval of the combination on July 8, 2015, and the expiry of the 15 day period during which CADE’s decision could be appealed.
According to Shell, other pre-conditions include merger clearances in Australia, China and Europe. BG said that the filing process to obtain these approvals and the regulatory approvals required in other jurisdictions is well underway. The company added that the combination will also require support from both BG Group and Shell shareholders.
Commenting on CADE clearance Shell CEO, Ben van Beurden, said: “The addition of BG’s competitive deep water Brazil position to Shell’s global portfolio is one of the main strategic drivers for the combination. Securing CADE approval at this early stage is a significant deal milestone and reflects not only Shell’s thorough preparation but also the professionalism and efficiency of the Brazilian authorities.”
Following comments made in June, when the recommended combination cleared its first antitrust hurdle in the United States, van Beurden also Friday re-confirmed the filing process is well underway in the remaining pre-conditional and other jurisdictions, and the recommended combination remains on track to complete in early 2016.