Oil and gas industry juggernaut Shell has cancelled a multi-billion bridged credit facility, originally meant to be used in support of the Shell’s $50 billion takeover of BG Group.
Shell in May 2015 as borrower, entered into a £10.07 billion ($14.5 billion) bridge credit facility agreement with a group of relationship banks in connection with the recommended cash and share offer made by Shell for the UK-based oil and gas company BG Group plc.
However, the Anglo/Dutch company on Thursday said it wouldn’t need the loan as it owns enough cash on its own to complete the BG merger.
“As Shell is in a position to fund the full amount of the cash consideration due on completion of the combination from its cash resources, Shell has, with effect from 10 February 2016, cancelled the commitments under the Bridge Credit Facility in full,” Shell said in a statement.
BG Group’s proposed merger with Shell, announced in April 2015, is nearing completion after shareholders of both companies approved the deal late in January this year. The deal is expected to become effective on February 15.
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