Brazil Clears Shell’s USD 70bn Buy of BG Group
Brazilian competition authority Cade has given approval to Royal Dutch Shell to proceed with the planned USD 70 billion acquisition of BG Group.
Cade’s decision to grant Shell the approval for the buy without any restrictions was gazetted on Wednesday.
The authority decided that the transaction will not negatively affect competitiveness in Brazil’s oil and gas industry as the combined company will have a smaller share of the market compared to other industry players.
Cade’s approval will become official following a 15-day period granted for appeals.
Back in June, Shell received approval for the deal from US competition authorities.
Shell and BG Group agreed on a GBP 47 billion (USD 70 bn) cash and share offer to be made by Shell for the entire issued and to be issued share capital of the British oil and gas company back in April.
Shell expects the deal to accelerate its growth strategy in global LNG and deep water, as well as to add some 25% to its oil and gas reserves and 20% to production, each on a 2014 basis.
The Anglo-Dutch company also expects the tie-up to position the company better in new oil and gas projects, particularly in Australia LNG and Brazil deep water.
This combination will create the world’s largest LNG producer.
World Maritime News Staff