Shell Will Buy BG for $70 Billion in Push for Gas Dominance

Shell Will Buy BG for $70 Billion in Push for Gas Dominance

Apr 8th, 2015 

by John Donovan. 

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by Javier BlasRakteem Katakey for Bloomberg.com

Royal Dutch Shell Plc agreed to buy BG Group Plc for about 47 billion pounds ($70 billion), making Europe’s largest oil company the pre-eminent player in global natural gas and adding fields in Brazil.

The deal, the industry’s biggest in at least a decade, will push Shell further into producing, shipping and selling gas as the company bets China and other emerging economies switch from coal and oil to cut pollution.

Investors were skeptical of the stock and cash acquisition, which isn’t expected to boost earnings per share until 2017. The price of the class of share being used to buy BG fell the most since 2008 on concern the company is overpaying.

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Posted in: Australia, Ben van Beurden, BG Group, Bloomberg, BP, Chevron, China,Exxon Mobil, Gas, LNG, Royal Dutch Shell Plc, Shell, Simon Henry.
Tagged: BP · Chevron · China · ExxonMobil · Gas · LNG · Royal Dutch Shell Plc · Shell

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