Gs (today)9 Apr 2015 22:50
IC TIP UPDATES:
Royal Dutch Shell (RDSB) has agreed a £47bn takeover of natural gas major BG Group (BG.), in a cash and shares deal that equates to 1,350p per BG share. This is a premium of around 52 per cent to the latter’s weighted average share price. Shell expects the deal to accelerate its growth in global liquid natural gas and deep water exploration, as well as providing annual pre-tax synergies of $2.5bn (£1.7bn). It expects BG shareholders to benefit from its dividend, confirming it will match next year the $1.88 per ordinary share payout in 2015. While this deal immediately benefits BG’s shareholders rather than Shell’s, we maintain our buy rating for both companies.