merger

Markets

Shell BG deal will ‘shape more competitive company’

Royal Dutch Shell has hailed its 52.6 billion US dollar (£36.4 billion) takeover of BG Group as a step towards becoming a “simpler, leaner, more competitive company”. The mega-deal - creating the biggest trader of liquefied natural gas - came into force on Monday after shareholders waved through the tie-up at the end of January.

Markets

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

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.

Markets

Shell’s bid for BG backed by ISS

Oil major Shell’s bid for BG Group has been approve by the ISS (Institutional Shareholder Services). The positive move comes after the company had sought to alleviate shareholder concerns over whether its takeover was still viable at sub $50 oil. ISS, a proxy advisory body, has backed the deal which it said had a “compelling strategic rationale” in the current climate.

Oil & Gas

Petroceltic considers future, launches offer period

Petroceltic said it was considering a number of options for the company’s future including the sale of some or all of its assets. The board said options being considered include a farm-out or sale of one or more the company’s existing assets, a merger with a third part, or the sale of its entire issued share capital in the form of debt or subscription of new ordinary shares.

Oil & Gas

Technip and FMC Technologies in merger talks

Technip and FMC Technologies are said to be in merger talks, according to reports. The oilfield services provider has held talks about a potential combination although terms have not yet been agreed on. Sources familiar with the matter said there is no certainty the two companies will do so.

Oil & Gas

Major oil companies have half-trillion dollars to fund takeovers

The world’s six largest publicly traded oil producers have more than a half-trillion dollars in stock and cash to snap up rival explorers. Exxon Mobil Corp. tops the list with a total of $320 billion for potential acquisitions. Chevron is next with $65 billion in cash and its own shares tucked away, followed by BP Plc with $53 billion, according to data from corporate filings compiled by Bloomberg. Merger speculation was running high after Anadarko Petroleum Corp. said Wednesday it withdrew an offer to buy Apache Corp. for an undisclosed amount. Apache rebuffed the unsolicited offer and wouldn’t provide access to internal financial data, Anadarko said. Both companies are now takeover targets, John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by phone.

Oil & Gas

Halliburton, Baker Hughes to sell additional businesses

Halliburton and Baker Hughes will sell additional businesses in connection with the former's pending acquisition of its smaller rival. In November last year Halliburton announced its proposed acquisition but in recent month it has run into regulatory hurdles with US antitrust enforces who believe the merger will lead to higher prices and less innovation. Halliburton said in April that it would sell three of its drilling businesses and on Monday said it had received proposals from multiple interested parties for each business.

Oil & Gas

Shell boss says BG acqusition fears have been “exaggerated”

Concern by investors that Shell will not complete its planned acquisition of BG Group has been exaggerated, according to the oil major’s chief executive. According to reports in the Financial Time, Ben Van Beurden told the paper that the two companies’ share prices had been “knocked about” by recent upheaval in stock markets. Van Beurden said both companies’ valuations were driven by “risk aversion at the moment, rather than careful considered pricing.”

Oil & Gas

Shell and BG mega-merger faces regulatory delay

The £47billion mega-merger between oil giants Shell and BG Group faces regulatory delay after authorities in Australia deferred a decision to let the deal go ahead. Shell said it was “working closely" with the Australian competition regulator after the watchdog delayed a critical decision on clearance for the deal, signalling it has reservations about the potential impact on gas supply. The deferral of the decision until September 17 leaves the clearance from the Australian Competition and Consumer Commission as one of three key approvals still outstanding, alongside China and the UK.

Oil & Gas

Halliburton facing antitrust hurdles over Baker Hughes

Halliburton Co.’s takeover of Baker Hughes Inc. is facing resistance from US enforcement officials who are concerned the tie-up could hurt competition, according to a person familiar with the matter. Justice Department lawyers reviewing the proposed $34.6 billion transaction are worried about consolidation in the industry from combining the No. 2 and No. 3 firms, said the person, who asked not to be identified because the review is confidential. Though Halliburton has proposed selling some assets to other companies, government officials aren’t convinced its plan would restore sufficient competition, the person said.