Shell says to use own cash to fund BG deal after cancelling $14.4 billion loan

Hague-based LNG giant Shell said Thursday it has cancelled a US$14.4 billion bridge credit facility intended to fund its takeover of BG group.

Shell entered in May 2015 into a £10,07 billion (US$ 14.4 billion) bridge credit facility agreement with a group of banks in connection with its takeover offer for UK-based BG.

“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.

The $50 billion merger has on Thursday received its final go-ahead after the High Court of Justice in England and Wales sanctioned the scheme of arrangement related to the combination.

BG and Shell’ shareholders approved the historic merger that will create the world’s largest LNG company in January.