BG All Set To Merge With Shell

By
Mfame Team
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On Thursday, majority of BG Group shareholders approved Royal Dutch Shell’s $52 billion (36 billion pounds) takeover.

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The merger will take place on 15th February 2016.  In a meeting held in London, 99.53 percent of BG shareholders voted in favour of the merger, a day after 83 percent of Shell’s shareholders approved the deal first announced on April 8 last year.

Highlights:

  • BG Chief Executive Officer Helge Lund is set to step down.
  • Shell executive Huibert Vigeveno will become the transitional CEO.
  • BG shares were up 3.4 % and Shell B shares were trading 5.4 % higher
  • The acquisition will boost Shell’s oil and gas production by 20% closely competing Exxonmobil.
  • Shell and BG will together overtake Chevron as the world’s second-biggest publicly-traded oil and gas company measured by market value.

Source: Reuters