Shell and BG Group’s US$70 billion merger received the unconditional merger clearance from the European Union (EU), completing two of the five preconditions for the mega merger, Shell announced today (2 September).
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Image from Shell. |
"Receiving clearance from the European Commission underlines the good progress we are making on the deal. The transaction is on track for completion in early 2016,” Ben van Beurden, Shell CEO said.
The merger still needs to gain antitrust approval from China, and Australia, in addition to foreign investment approval in Australia.
Shell and BG got the green light from Brazil’s Council for Economic Defense in July without restrictions.
Three weeks prior, in June, the supermajor deal received early termination of the US antitrust waiting period from the US Federal Trade Commission.
If the merger is approved, it will add about 25% to Shell’s proven oil and gas reserves and 20% to production, including LNG and deepwater assets in Brazil and Australia, and enable an increase in asset sales to $30 billion by 2016-18.
Shell made the multi-billion cash and share offer for the UK-headquartered deepwater and LNG-focused BG in April.
Read more:
Shell, BG get Brazil green light
Shell, BG merger clears US regulatory hurdle
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