LONDON (Alliance News) - BG Group PLC Monday said the Brazilian competition authority has cleared the company's proposed mega-merger with Royal Dutch Shell PLC.
The authority had already given initial approval earlier in July before formally clearing the deal after an appeal period ended. The clearance is the first of five needed by the pair as BG and Shell await approval from Australia, China and the European Union. The company did not state the fifth approval that it requires.
Both sets of shareholders also need to approve the deal.
The proposed takeover of BG Group by Shell was agreed on April 8, whereby BG shareholders will get 383 pence in cash plus 0.4454 Shell B shares per BG share. Based on the 90 trading day volume weighted average price of 2,170.3 pence per Shell 'B' Share on April 7, the total value of the deal is 1,350.00 pence per BG share, valuing the company at USD47.0 billion.
The deal is the biggest UK-to-UK merger in history, breaking a record previously held by the GBP44.4 billion all-share merger of Glaxo Wellcome and SmithKline Beecham in 2000 to form GlaxoSmithKline PLC. It is also the biggest deal in the oil and gas sector since the turn of the century, when a fall in the oil price created an environment similar to the one providing today's backdrop
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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