Oil and Gas Industry in Transition: oil giant Shell BG Group will take over … – ABC Online

Wednesday, 08.04.2015, 11:04 am

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It is the biggest takeover in recent years in the oil and gas industry. Shell wants the British gas producer BG Group to buy and thus even more on LPG

47 billion pounds (64 billion euros) in cash and shares Shell wants to table set, as the two companies announced on Wednesday. This represents a premium of approximately 50 percent of the closing price of the BG share of Tuesday.

In the industry there had been speculation about major acquisitions for some time because of the drop in oil prices in recent months. Many companies are under pressure to reduce costs and again to make more profit. The proposed merger will save at least 2.5 billion dollars annually before taxes. Shell is confident that the competition authorities rubber-stamp the merger. We do not expect any major problems, it said

Shell wants business to focus more strongly

Shell would in future concentrate on fewer areas, Shell said boss Ben van Beurden in the message. Between 2016 and 2018, the Group plans to sell parts of the company worth about 30 billion US dollars (27.5 billion euros). After the BG-purchase Shell have been in the international oil company is the largest manufacturer of LPG.

Shareholders of the British to obtain 3.83 pounds per share and approximately 0.45 Shell shares of type B. BG recommends its investors to accept the offer of the Anglo-Dutch group. BG had last market value of 31 billion pounds, so if the acquisition and cross-sector one of the largest this year. BG shares shot after opening of trading by more than 40 percent upward. Contrast Shell shares fell on Wednesday morning by more than two percent. Papers from competitors such as BP and Tullow Oil laid against it strongly.

41.7-billion-pound fusion

For Shell, it would be the largest acquisition since the 41,7- billion-pound merger of the Dutch and the British branch. With the acquisition of the largest and third largest gas producer in the UK would go together. In the words of the shell-Chief of the deal could be completed in early 2016.

BG had in the fourth quarter to write off five billion dollars, more than ever before. The reason was mainly in Australia, where parts of the group had lost much of its value due to falling commodity prices. Two months ago, had climbed the executive chair at BG Helge Lund, previously the manager was held the same position at the Norwegian oil company Statoil.

In addition to the mega-deal Shell also announced a share buyback program of at least 25 billion US dollars ( 23 billion euros) from 2017 to.

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