LONDON (Alliance News) - Royal Dutch Shell PLC looks set to formally complete its mega-merger with BG Group PLC next month after BG shareholders gave the deal the green light at a general meeting held Thursday.
BG Group said 99.55% shareholders voted in favour of the merger between the two giants at a general meeting, with over 87% approving the court-sanctioned scheme of arrangement at a related court meeting. The approval follows on from Shell shareholders approving the deal on Wednesday.
With both sets of shareholders in favour of the deal, completion of the deal relies on the court sanctioning the scheme of arrangement by which the merger is being facilitated. A court hearing will be held on February 11, with the deal becoming effective on February 15 if all goes to plan.
There were concerns that shareholders, especially Shell shareholders, would potentially reject the deal following concerns raised in recent months about the value of the deal given the slump in world oil prices since the deal was announced in April last year.
BG Group did not comment on the shareholder result Thursday, as it waits for the deal to be formally completed, but Shell Chief Executive Ben van Beurden said Wednesday that he was "delighted" shareholders had shown "strategic logic" by approving the deal.
BG Group shares were trading up 3.2% to 1,062.0 pence per share on Thursday afternoon. Shell 'A' shares were up 4.7% to 1,531.0p whilst 'B' shares were up 4.8% to 1,532.0p.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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