Royal Dutch Shell to take over BG Group

Royal Dutch Shell Chief Executive Officer Ben van Beurden.

Royal Dutch Shell Chief Executive Officer Ben van Beurden.

Royal Dutch Shell is likely to gain control of BG Group and its assets, given the BG Board’s support for the $91 billion deal.

The merger would see Shell take control of BG Group’s $26 billion Queensland Curtis LNG (QCLNG) Project, which recently began exporting LNG from its Curtis Island facility.

Royal Dutch Shell Chief Executive Officer Ben van Beurden said the two companies are a great fit.

“This transaction fits with our strategy and our read on the industry landscape around us,” Mr van Beurden said.

“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.”

Mr van Beurden added that the company will be concentrating on fewer themes at a larger scale following the merger, to drive profitability and balance risk, and unlock more value from the combined portfolios.

BG Group CEO Helge Lund said that the offer from Shell has strong strategic logic.

“The consolidated business will be strongly placed to develop the growth projects in BG’s portfolio,” Mr Lund said.

“The transaction will take time to complete, during which my team and I will remain committed to BG and our shareholders, and to safely delivering our 2015 business plan.”

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