Royal Dutch Shell plc Shareholders Express Concern Over Dividends After BG Group Merger
By: MICHEAL KAUFMAN: Published: Apr 10, 2015 at 9:39 am EST
A $70 billion merger deal between Royal Dutch Shell plc (ADR) (NYSE:RDS.A) and BG Group plc (ADR) (OTCMKTS: BRGYY) was finalized earlier during the week. Shell had paid a premium of 50% on BG Group’s share price on April 9. Many have commended the efforts of Shell CEO Ben van Beurden for going through with the deal.
The deal holds great benefits for Shell and will allow the company to access BG’s cash-rich assets to become the global leader in liquefied natural gas. The oil company had been finding it hard to replace its oil and gas reserves but the merger with BG would solve this problem. While the deal brings in benefits, it raises some concerns among the shareholders, who have expressed worries regarding dividend payouts.
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