Shell in bid for BG Group
Published by Callum O'Reilly,
Senior Editor
LNG Industry,
Royal Dutch Shell has announced that it has reached an agreement to buy BG Group, the UK’s third largest energy company, in a deal worth £47 billion.
Shell is hopeful that the deal will accelerate its growth strategy in global LNG and deep water, as well as enhance its position in new oil and gas projects.
In the short-term, Shell confirmed that it would pay its existing shareholders, including BG shareholders, dividends of US$1.88 per ordinary share in 2015 and at least that amount next year. Shell also expects to commence a share buyback programme in 2017 of at least US$25 billion for the period 2017 – 2020.
The deal would represent the first big merger between energy companies in a decade. The BBC reports that the deal could produce a company with a value of more than £200 billion.
More details to follow…
Edited from various sources by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/08042015/shell-in-bid-for-bg-group-552/
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