BG Group

Oil & Gas

Shell leapfrogs Total as UK’s biggest producer after BG merger

16/02/2016

Shell leapfrogged Total to become the UK’s biggest net oil and gas producer after completing its £36million takeover of BG Group. The “mega-merger” was approved by shareholders from both companies last month and went through yesterday. It creates a firm with a net output of 200,000 barrels of oil equivalent (boe) per day in the UK alone.

Europe

China clears Shell-BG Group deal

26/01/2016

China’s government has approved Shell’s £47billion takeover of BG Group, a Ministry of Commerce spokesman has confirmed. This means that Shell has passed the last anti-monopoly review prior to the completion of the acquisition. Shell is expected to account for some 30% of China’s total natural gas imports by 2017, according to available statistics.

Market info

Shell’s BG arbitrage fades as investors set to back deal

25/01/2016

Royal Dutch Shell Plc is on the brink of completing its biggest acquisition as shareholders look set to back its purchase of BG Group Plc. Risks to the deal completing have almost disappeared. The discount of BG’s shares to the offer price narrowed to a record low of 2.2 percent on Monday after some of Shell’s top shareholders and advisory firms backed the transaction this month. It was at 12.5 percent on Dec. 21.

Oil & Gas

Fitch says Total cuts must be the steepest

25/01/2016

French group Total has to make the steepest cuts to investments and shareholder returns among Europe's oil majors if crude prices remain weak, in order to maintain its current credit rating, Fitch said today.

Market info

Shell remains positive of BG merger deal even at $50 oil

08/01/2016

Oil major Shell has told investors its purchase of BG Group will work even if the oil price stays at an average of $50 a barrel for the next two years. According to reports, the lowest estimate yet for the oil price has been made in a bid to retain shareholder support for the $51billion deal amid plunging crude markets.

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