Anglo/Dutch oil titan Shell has moved one step further to completing what has been described as one of the largest oil and gas deals in history, the acquisition of the UK-based BG Group.
Namely, the company has skipped another hurdle on its track to finalize the $70 billion acquisition after Brazil’s Council for Economic Defence (CADE) gave its blessing.
The proposed deal, scheduled for completion in early 2016, calls for review and approval by relevant antitrust and regulatory authorities, and support from both sets of shareholders.
According to Reuters, Brazil’s competition watchdog CADE on Wednesday gave preliminary nod to the deal “without restrictions.” Quoting BG, Reuters further reported that if no appeals were lodged or referrals made in the next 15 days, CADE’s clearance would become final.
In its takeover statement issued in April 2015, Shell said the acquisition of BG Group would add around 25% to Shell’s proved oil and gas reserves and 20% to production, each on a 2014 basis, put Shell into an improved position in competitive new oil and gas projects, especially and Brazil deep water and Australia LNG.
The transaction could boost Shell into becoming major reserves holder and investor in Brazil, as the company said its production in the country could rise from 52,000 boepd in 2014 to an estimated 550,000 boepd at the end of the decade.
Worth noting, Shell in June said it had cleared its first antitrust hurdle by receiving early termination of the US antitrust waiting period from the United States Federal Trade Commission
Offshore Energy Today Staff