Shell completes BG Group acquisition
Royal Dutch Shell has completed acquisition of BG Group for approximately $53bn, making it the biggest energy company.
The move follows approval from the High Court of Justice in England and Wales for the scheme of arrangement on 11 February 2016.
Royal Dutch Shell CEO Ben van Beurden said: "This is an important moment for Shell.
"It significantly boosts our reserves and production and will bring a large injection to our cash-flow. We have acquired productive oil and gas projects in Brazil and Australia and other key countries.
"We will now be able to shape a simpler, leaner, more competitive company, focusing on our core expertise in deep water and LNG."
As per the terms of the deal, shareholders who made no valid election under the mix and match facility will receive 0.4454 new Shell shares and 383 pence in cash for each scheme share held, the firm said.
Shell expects the acquisition to boost its operations particularly in Brazil. It plans to double production capacity in the country by 2020 with new fields, reported Bloomberg.
Brazil is estimated to hold 15 billion barrels of proved oil reserves, according to US Energy Information Administration.
Shell will now move ahead with its recently announced plan to axe up to 10,000 jobs as well as divest $30bn worth of assets over the next three years in a bid to reduce costs and finance the acquisition, according to Reuters.
With the BG Group acquisition, Shell has become one of the world's biggest public oil and gas firm.
Image: Shell head office, Carel van Bylandtlaan, The Hague. Photo: courtesy of PL van Till/Wikipedia.