BG and Shell merger receives approval from FIRB

The takeover would see Shell looking after BG's Australian subsidiary QGC

The takeover would see Shell looking after BG's Australian subsidiary QGC

The BG Group takeover by Shell has now been approved by the Australian Treasurer through the Foreign Investment Review Board. The merger now only requires the permission of China’s Ministry of Commerce.

This approval is one of the five regulatory clearances that are pre-conditions to the proposed merger and completes the review process in Australia.

Shell CEO, Ben van Beurden, commented “I am very pleased to receive this news. The FIRB approval is an important step towards deal completion.”

The approval follows on from the clearance granted by the Australian Competition and Consumer Commission (ACCC) on 19 November, the Brazilian competition authority, CADE on 24 July 2015, and the European Commission gave approval on 2 September 2015.

Mr van Beurden added “The addition of BG’s integrated gas assets in Australia to Shell’s global portfolio is one of the main strategic drivers behind the recommended combination. The Shell-BG combination is a sign of Shell’s confidence in the Australian economy. It is also a springboard to change Shell into a simpler, more profitable and resilient company. We remain on track to complete the deal in early 2016.”

The pre-conditions and conditions to the combination are set out in the announcement of the proposed offer released on 8 April 2015.
Ben van Beurden said in April “This transaction fits with our strategy and our read on the industry landscape around us.

“BG will accelerate Shell’s financial growth strategy, particularly in deep water and LNG: two of Shell’s growth priorities and areas where the company is already one of the industry leaders.”

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