Shell BG Group Merger Slammed
By: MICHEAL KAUFMAN: Published: May 8, 2015
The massive plunge in crude oil prices has seen a growing trend of merger activities in the oil and gas sector. Recently, Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) finalized its $70 billion merger deal with BG Group plc. (ADR) (OTCMKTS:BRGYY). The lower crude oil prices pose an ideal time for energy companies to undertake investments at cheaper rates and wait for the prices to go up again.
The deal will allow the two combined company’s to becoming one of the world’s largest LNG producers. However, the massive size of the combined entity will become a sign of concern for the regulators. Thus, Shell along with BG will have to sell assets to win regulatory approval.
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