Shell and BG Group will create an oil super merger after both parties agreed on a new deal. Shell, worth £136 billion ($202 million), revealed in a regulatory announcement on the London Stock Exchange that it has valued BG Group at £47 billion. If the offered deal goes through, it will create a super group worth £224 billion in combined value.
Under the terms of the deal, BG shareholders will be entitled to receive 383 pence in cash for each BG share and 0.4454 Shell B shares for each BG share. BG shareholders will end up owning 19% of the new combined group.
“BG will accelerate Shell’s financial growth strategy, particularly in deep water and liquefied natural gas: two of Shell’s growth priorities and areas where the company is already one of the industry leaders. Furthermore, the addition of BG’s competitive natural gas positions makes strategic sense, ahead of the long-term growth in demand we see for this cleaner-burning fuel,” said Ben van Beurden, CEO of Shell in a statement……..
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