Hurdle removed for Shell, BG Group deal

Brazil

RIO DE JANEIRO, July 8, 2015 – On Wednesday, Brazil’s official gazette recognised Shell’s acquisition of smaller rival BP in a $70-billion deal.

This move gives Shell provisional regulatory approval from the country’s regulator, Cade, following the go-ahead from the US in June. In a statement, the company said that approval is still needed from the European Union, Australia and China for the deal to reach completion.

Shell’s acquisition of BG Group’s assets in Brazil will bring it closer to the country’s pre-salt plays. Shell’s absorption of BG Group’s Australia assets will add significantly to the company’s liquefied natural gas sector.

Once the acquisition is complete, it is estimated that Shell will have boosted its production by 20 percent and its liquefied natural gas production by 27 percent.

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