Shell step closer to buying BG. Clears first antitrust hurdle.

Business & Finance

Royal Dutch Shell plc today announced its recommended combination with BG Group plc has cleared its first antitrust hurdle by receiving early termination of the US antitrust waiting period from the United States Federal Trade Commission (“FTC”).

The two companies announced in April that they had reached agreement on the terms of a recommended cash and share offer to be made by Shell for the entire issued and to be issued share capital of BG. The proposed deal, which remains on track to complete in early 2016, requires review and approval by relevant antitrust and regulatory authorities, and support from both sets of shareholders, as set out in the 8 April announcement.

Shell CEO, Ben van Beurden, said: “Securing early termination of the US antitrust waiting period from the FTC at this early stage is a clear demonstration of the good progress we’re making on the deal. We’re well underway with the anti-trust and regulatory filing processes in relevant jurisdictions around the world and we’re confident that, following the usual thorough and professional review by the relevant authorities, the deal will receive the necessary approvals. We remain on track for completion in early 2016.”

In what has been described as an oil and gas deal of the decade, Shell in April announced it had reached an agreement to buy BG Group for $70 billion.