Royal Dutch Shell has agreed to buy BG Group by 47 billion pounds — equivalent to 69,700 million dollars, as both companies announced Wednesday. The operation gives the big oil company Shell participation in global markets for natural gas in oil prices decline.
The Board of Directors of Shell and BG Group reached an agreement on the amount and modalities of the transaction. “The result will be a company more competitive and robust for all our shareholders in the current volatility of oil prices,” said Jorma Ollila, Chairman of Shell.
Both companies emphasize their complementarity since BG Group, that emerged from the former British Gas, is well established in Australia and Brazil, have an important activity in the production of Liquefied Natural Gas (LNG) and exploration in deep waters.
Shell offers shareholders of BG Group to pay a portion of the acquisition in cash and the other actions, which would make them owners of 19% of the capital of the new group.
At the same time, Shell will launch a purchase of its own shares for an amount of around 25,000 million dollars between 2017 and 2020.
“Bold, strategic decisions shape our industry”, said the executive director of Shell, Ben van Beurden. “BG and Shell makes a great couple. This transaction fits with our strategy and our reading of the landscape of the industry in our environment”.