The $70 billion takeover of LNG player BG by Royal Dutch Shell has secured its second approval from Brazil’s competition authority CADE.
The recommended combination of the two companies has recently cleared its first hurdle by obtaining a green light from the United States Federal Trade Commission (FTC).
Brazil’s CADE said on Wednesday it is granting the deal without any restrictions. The transaction will not undermine competitiveness in Brazil’s oil and gas market, according to CADE.
There will be a 15-day waiting period to allow for any appeals before CADE’s decision becomes final.
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.
The two companies need regulatory clearances from all the countries BG operates in.
Shell said it received positive feedback from Australia, and Kazakhstan, and the company’s CEO visited China in an attempt to gain the country’s antitrust approval.
The transaction is on track to complete in early 2016.
LNG World News Staff; Image: BG