The transaction was passed with 83.03% of shareholders voting in favor of the combination and 16.92% voting against.
According to its approved Dec. 22, 2015 circular providing further details of the transaction, Shell expects the addition of BG Group’s portfolio, especially its Brazilian and Australian holdings, to enhance its free cash flow. It also sees the merger as a “springboard” to reshape itself into a simpler group concentrated around three pillars: deepwater, LNG, and its upstream and downstream cash engines.
Additionally, the supermajor sees the potential for BG Group’s LNG and deepwater assets to enhance its standings in these areas, accelerating its growth and de-risking its strategy.
Shell reduced its costs and capital spending by about $12 billion, and said it expects to make further reductions this year to ensure it “can continue to finance the investment program and the dividend, despite the downturn.”
Should BG shareholders approve the offer at shareholder meetings to be held on Jan. 28, the transaction would be expected to complete on Feb. 15, 2016, subject to the satisfaction or waiver of certain customary conditions, including the sanction of the scheme of arrangement to implement the combination by the High Court of Justice.