Impact of Global Sell-Off on Shell-BG Group Deal

Impact of Global Sell-Off on Shell-BG Group Deal

Aug 25th, 2015 

by John Donovan. 

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By: MICHEAL KAUFMAN: Aug 25, 2015

Royal Dutch Shell plc. (ADR) (NYSE:RDS.A) earlier this year finalized its $70 billion merger deal with BG Group plc. (ADR)(NYSE:BRGYY). The cash-and-stock deal valued BG at $20 per share. Shell, based on BG’s stock price on April 7, agreed on paying a 50% premium. However, as yesterday’s sell-off and grim crude oil prices are factored into the mix, it appears that the deal, among many others, may fall apart.

BG stock slipped 6.78% to close Monday’s trading session at $14.71 per share. The spread for the deal reached its highest level on Monday. Shell looks forward to acquiring BG’s Liquefied Natural Gas (LNG) assets. The company is also interested in the acquisition so as to take advantage of the opportunity to enter new markets.

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Posted in: BG Group, Bidness Etc, Gas, LNG, Oil Prices, Royal Dutch Shell Plc, Shell.
Tagged: BG Group · Gas · LNG · Royal Dutch Shell Plc · Shell

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