Regulatory worries, energy prices take shine off Shell-BG deal
…persistently low oil prices could yet lead Shell to rethink the deal are dampening sentiment. That has left BG shares trading at a discount to the Shell cash and share offer.
LONDON | BY RONBOUSSO: Business News | Tue Sep 8, 2015
A look at valuations illustrates how regulatory concerns and stubbornly low energy prices have stoked investor anxiety over Royal Dutch Shell’s (RDSa.L) planned takeover of British rival BG Group (BG.L).
Hailed as an audacious and industry-changing merger when it was unveiled in April, the headline value of the deal has slipped from 47 billion pounds ($72 billion) to around 38 billion because of the lower price of Shell shares, which closely track oil prices.
Concerns that the Australian and Chinese regulators could set high hurdles and, more broadly, that the persistently low oil prices could yet lead Shell to rethink the deal are dampening sentiment. That has left BG shares trading at a discount to the Shell cash and share offer.
The TRUTH will set you FREE.
No comments:
Post a Comment