Shell agrees deal to buy energy rival BG Group for $70bn

The Anglo-Dutch energy company has made a cash and share offer that values BG group at a 50pc premium to its last closing price

The boards of Shell and BG have reached agreement on the terms of a recommended cash and share offer by the Anglo-Dutch company for its smaller rival.


If the deal is approved by shareholders and regulators it will be one of the biggest transactions of the year.

The acquisition values BG, which has been under increasing pressure following heavy falls in oil and gas prices, at $69.6bn (or £47bn), a 50pc to its closing price on Tuesday.

Ben van Beurden, the chief executive of Shell, said: «Bold, strategic moves shape our industry. BG and Shell are a great fit. This transaction fits with our strategy and our read on the industry landscape around us.

«BG will accelerate Shell’s financial growth strategy, particularly in deep water and liquefied natural gas: two of Shell’s growth priorities and areas where the company is already one of the industry leaders.»

Under the terms of the deal, BG shareholders will receive £3.83 in cash and 0.45 Shell B shares for every BG share they own. This values each BG share at £13.50, which works out as 52pc preminum to the average price of the shares over the past 90 days. BG shareholders will end up owning roughly 19pc of the combined group.

Helge Lund, the chief executive of BG, said: «The offer from Shell delivers attractive returns to shareholders and has strong strategic logic. BG’s deep water positions and strengths in exploration,liquefaction and LNG shipping and marketing will combine well with Shell’s scale, development expertise and financial strength.»

Shell said that the acquisition would increase its oil and gas reserves by 25pc and its production capabilities by 20pc.

The deal will be viewed by many as a potentially cheaper means of Shell increasing its reserve base than expensive exploration. The company is believed to have spent around $6bn searching for oil in the seas off northern Alaska to no avail.

The tie-up will also make the combined group by far the biggest producer of liquefied natural gas, a form of gas that is cooled to a liquid so that it can be transported around the world in tankers.

BG has been touted as a serious takeover target since Brent crude prices started to collapse in June last year. A barrel of oil has fallen nearly 50pc to $59.10 in the past 10 months.

Dwindling gas reserves in Egypt have also dragged down the group’s profits, which fell 19pc to $915m in the three months ended December.

The FTSE 100 energy firm, the third-largest listed in the UK after Shell and BP, slumped to a pre-tax loss of $2.3bn for the full year, down from a pre-tax profit of $3.9bn in 2013.

It also cut 15pc of its 5,000-plus staff and plans to reduce this by a further 10pc this year.

BG was forced to write down its oil and gas assets by $9bn in February and parachuted in new chief executive Helge Lund from Statoil a month early. His arrival makes him the third chief executive in as many years, and BG had no boss at all for almost 12 months after Chris Finlayson departed following poor results.


Royal Dutch Shell

Mr Lund has already accrued some goodwill with investors by agreeing to halve his generous compensation package from the £14m originally promised to around £7m a year.

Shell, which has a market capitalisation of £135bn, has been looking to expand its gas operations, betting on a price recovery.

It has also been affected by the fall in oil prices, and last month announced plans to cut jobs and adjust shifts in the North Sea. The company will reduce the number of staff and agency contractors it employs in its Aberdeen operations by 250 this year in a bid to cut costs.

Reports that BG and Shell could be in talks first emerged at the end of last year after BG’s share price dropped to a five-year low.

BG shares closed 6.74pc higher at 910.4p on Tuesday before news of the talks emerged. Shell’s shares climbed 3.4pc to £20.94.

Shell может приобрести крупнейшую британскую нефтегазовую компанию BG Group

Shel1Англо-голландская нефтегазовая компания Royal Dutch Shell изучает возможности покупки британского нефтегазового предприятия BG Group plc. В настоящее время ведутся переговоры по данному вопросу. Сумма сделки может составить 68 млрд долларов. Об этом пишет сегодня издание Financial Times.

Покупка BG Group даст возможность Shell получить доступ к существенным запасам углеводородов, а также позволит неплохо сэкономить деньги, поскольку в противном случае компании пришлось бы потратиться на геологоразведку новых месторождений. Так, отмечает Financial Times, Shell потратила примерно 6 млрд долларов на поиски «черного золота» у северного побережья Аляски, однако компания там так и не завершила ни одной скважины.

Также, если сделка с BG Group успешно завершится, то англо-голландский нефтегазовый концерн сумеет усилить свои позиции и надежно закрепится у побережья Бразилии, рассчитывая и на добычу сланцевого «голубого топлива» в Австралии.

Согласно информации издания, BG Group выступила с заявлением, в котором заявила о том, что ведет переговоры с Shell, но пока остается не очень понятно, сделает ли Shell предложение о покупке.

Royal Dutch Shell — англо-голландский нефтегазовый концерн, занимающийся добычей и переработкой нефти и газа более чем в 40 странах.


Royal Dutch Shell

BG Group — один из крупнейших производителей газа в Великобритании, третий по величине. Ключевыми направлениями работы предприятия являются разведка и добыча углеводородов, а также производство сжиженного природного газа (СПГ), транспортировка и распределение «голубого топлива». Параллельное направление работы компании — производство электроэнергии.






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