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Shell and BG Group merger set for swift completion

Barclays Capital highlighted that the deal was now potentially ahead of schedule, with completion due in the New Year.
Shell and BG Group merger set for swift completion
Van Beurden says it will make Shell more profitable amid lower oil prices

The merger of Shell (LON:RDSB) and BG Group (LON:BG.) is now moving to the final stages after the Chinese authorities gave it the rubber stamp.

Shell, in a statement, said it had now received unconditional merger clearance from the Chinese Ministry of Commerce. It comes after similar approvals from Brazil, the EU and Australia (all areas where the groups have key business interests).

It marked the completion of the final pre-conditional approvals.

Ben van Beurden, Shell chief executive, said: “I am delighted we now have all the pre-conditional approvals needed to move to the next important phase.”

“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.”

Barclays Capital highlighted that the deal was now potentially ahead of schedule.

“Assuming that both sets of shareholders vote in favour of the deal, it is possible that the transaction could now be completed by the end of January or mid-February compared to our initial assessment of end March,” it said in a note.

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October 28 2015
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