Shell seeking to buy BG in first oil super-merger in over a decade
The collapse in global oil prices has sparked much speculation about mergers in the industry and BG has often been cited as a potential target.
(Reuters) – Royal Dutch Shell(RDSa.L) is in advanced talks to buy BG Group (BG.L) in the first oil super-merger in more than a decade, seeking to extend its lead in gas production and close the gap with the world’s biggest oil major, U.S. ExxonMobil (XOM.N).
BG, which has a market value of $46 billion, said in a statement on Tuesday it was in advanced discussions regarding a possible offer by Shell, whose market capitalisation is $202 billion. Exxon is worth $360 billion.
A successful deal would give Shell access to BG’s multi-billion dollar projects in Brazil, East Africa, Australia, Kazakhstan and Egypt, including some of the world’s most ambitious liquefied natural gas (LNG) projects.
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