The $70 billion takeover of LNG player BG by oil and gas giant Shell has just secured its first approval from the U.S. regulators.
The recommended combination of the two companies has cleared its first antitrust hurdle by receiving early termination of the US antitrust waiting period from the United States Federal Trade Commission, the two companies said in a statement on Tuesday.
Shell and BG said 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 would create one of the largest LNG players the world has ever seen, requires review and approval by relevant antitrust and regulatory authorities, and support from both sets of shareholders, as set out in the April announcement, the statement said.
Shell CEO, Ben van Beurden , said that securing early termination of the US antitrust waiting period from the FTC means good progress has been made 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 ,” van Beurden said.
The FTC clearance is the first regulatory approval received for the proposed $70 billion combination. The two companies need regulatory clearances from all the countries BG operates in.
Shell said it received positive feedback from Australia, Brazil and Kazakhstan, and the company’s CEO visited China in an attempt to gain the country’s antitrust approval.
LNG World News Staff; Image: BG Group