Royal Dutch Shell Plc has agreed to buy BG Group Plc for approximately 47 billion pounds ($70 billion). The combination will result in the largest producer of liquefied natural gas (LNG) among international oil companies, with sales of about 50 million tons expected by the end of this decade.
The transaction will provide Shell with access to BG Group’s offshore Brazilian oil assets, along with BG’s undeveloped gas resources in East Africa and its LNG project in Australia. The merged company, led by Shell CEO Ben van Beurden, will increase Shell’s proven oil and gas reserves by at least 25%.
The deal is expected to be completed in early 2016. The size of the combination, one of the largest such transactions to date, means that Shell will require antitrust approvals from regulatory agencies in Australia, China, Brazil, and the EU.
Shell was advised by Bank of America Merrill Lynch, and BG worked with Goldman Sachs Group Inc. and Robey Warshaw LLP.