Shell to buy BG Group for nearly $70B (CBC)
The Associated Press
Posted: Apr 08, 2015 3:27 AM ET Last Updated: Apr 08, 2015 4:51 AM ET
Royal Dutch Shell has agreed to buy British gas producer BG Group for 47 billion pounds ($69.7 billion US) in cash and stock, the companies announced Wednesday. The move gives oil giant Shell a greater stake in natural gas markets in the wake of tumbling oil prices.
Consolidations through takeovers and mergers are among the ways energy companies are seeking to reduce costs and become more efficient as oil prices have slumped.
A joint statement said the boards of both companies are recommending that shareholders approve the deal that will create a more competitive, stronger company for both sets of shareholders in today's volatile oil price world.
Shell said the takeover will add 25 per cent to its proved oil and gas reserves and 20 per cent to production compared with 2014, and boost its position in new oil and gas projects in Australia and Brazil.
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more: http://www.cbc.ca/news/business/shell-to-buy-bg-group-for-nearly-70b-1.3024386