Royal Dutch Shell has received regulatory approval from China, which represents the final regulatory hurdle necessary for the company’s merger with BG Group plc, according to Reuters. The transaction is expected to be completed by early 2016, following shareholder votes.
The $70 billion acquisition has already received approvals from Australia, Brazil, and the EU. In June, Shell’s proposed merger with BG Group received US approval when the transaction cleared its first antitrust hurdle by receiving early termination of the US antitrust waiting period from the US Federal Trade Commission.
With regulatory approvals completed, Shell and BG will soon publish a prospectus containing information on the transaction and the change in the share structure, and will announce dates for general meetings where the transaction will be put to shareholder vote.
The merger is expected to result in job cuts where BG's 5,000 jobs overlap with Shell's nearly 100,000-strong workforce. According to BBC News, Shell plans to eliminate some 2,800 jobs once the merger is completed, which amounts to approximately 3% of the combined group's workforce. These job cuts would be in addition to the 7,500 job losses that Shell announced in July.