In the wake of the Brazilian economy, which is facing one of its largest recession in 25 years, the Brazilian Government and CADE approved the $70 billion acquisition without any restrictions. This acquisition would make Shell the largest foreign operator in Brazil. Preconditional approvals are awaited from the European Union, Australia and China, while the Federal Trade commission has already given its nod of approval to the venture. Experts believe that Shell’s production will increase to 500,000 by the year 2020. BG owns 25 % of the Lula field and Shell operates 20 % of the Libra fields.
