Shell plans to complete BG merger by Feb. 15

Royal Dutch Shell plans to complete its proposed $53 billion merger with BG Group by Feb. 15, according to Reuters.

The company is also lowering its capital spending plan for next year for the combined group by $2 billion to $33 billion.

Reuters noted that Shell expects that the merger with BG Group will strengthen the financials of the group, and that the addition of the BG business, especially its offshore oil production in Brazil and liquefied natural gas (LNG) facilities in Australia, will offer $3.5 billion of cost savings and strengthen Shell’s ability to maintain dividends at $1.88 per share.

The proposed merger recently cleared its last regulatory hurdle, following approval from China. Shareholders of Royal Dutch Shell and BG Group plan to vote on the merger of the two companies on Jan. 27 and Jan. 28, respectively.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...