Will China’s Ministry Of Commerce Block Shell-BG Deal?

Will China’s Ministry Of Commerce Block Shell-BG Deal?

Jun 5th, 2015 

by John Donovan. 

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Jun. 4, 2015 3:15 PM ET

Will China’s Ministry Of Commerce Block Shell-BG Deal?

Summary

• Shell-BG deal is likely to face most scrutiny in China.
• MOFCOM is likely to approve the merger with conditions.
• These conditions could involve both structural and behavioral remedies.

Ever since Royal Dutch Shell (NYSE:RDS.A) (NYSE:RDS.B)announced to acquire BG Group’s (OTCPK:BRGXF) natural gas assets and deep-water oil fields in a $70 billion deal, there have been concerns that the deal may be delayed, if not blocked, due to prolonged scrutiny from regulators around the world. While the deal could face potential hurdles in EU, Australia, China, and Brazil, I think it is unlikely to be blocked by any country. However, I think China is likely to raise majority of the concerns and therefore, I’m going to focus on China in this article.

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Posted in: Ben van Beurden, BG Group, Bidness Etc, China, Gas, LNG, Royal Dutch Shell Plc, Shell.
Tagged: Ben van Beurden · BG Group · China · Gas · Royal Dutch Shell Plc · Seeking Alpha · Shell

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