Shell Handed A Get-Out-Jail Card As Its $70 Billion Bid For BG Hits An Obstacle
Tim Treadgold, CONTRIBUTOR
Shareholders in Royal Dutch Shell ngIf: ticker will be uncertain whether they should thank, or criticize, the Australian Government’s competition regulator for threatening the proposed $70 billion merger with rival oil and gas producer, BG Group ngIf: ticker .
On one hand, a deal which could transform Shell is being threatened. On the other hand, missing out on BG could be the best result for Shell.
The problem is that BG’s primary appeal to Shell is that the target, once known as British Gas, is heavily exposed to liquefied natural gas (LNG), a fuel moving into a period of significant over-supply and potentially lower prices, at least in the short term.
The TRUTH will set you FREE.
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