BG Shareholders Give Final Nod to Merger with Shell

BG shareholders have voted today in support of Shell’s takeover bid thus securing the final approval for the multi-million merger, the company confirmed.

The vote comes one day after Shell’s shareholders gave the green light to the USD 52 billion merger.

Shell expects the combination to accelerate its growth strategy in global LNG and deep water. This combination will also create the world’s largest LNG producer.

What is more, the transaction will add some 25% to Shell’s proved oil and gas reserves and 20% to production, each on a 2014 basis, and provide Shell with enhanced positions in new oil and gas projects, particularly in Australia LNG and Brazil deep water.

By applying its capabilities to the BG assets, Shell believes that, by around 2020, the combined group will have two strategic growth businesses – deep water and integrated gas – that could potentially each generate $15-$20 billion of cash flow from operations per annum.

This is in addition to upstream and downstream engines that could potentially generate a further combined $15-$20 billion of cash flow from operations per annum in total; and long-term positions which could potentially add around a further $10 billion of cash flow from operations per annum.

 “ BG shareholders will receive significant value through the premium being offered for their shares. They will become shareholders in Shell, accessing an attractive dividend policy, a share in the significant synergies and the compelling upside and enhanced operating capability of the combined group. We believe that the combination is in the interests of both our companies and their shareholders,Jorma Ollila, Chairman of Shell said.

The merger is expected to be implemented by way of a court-sanctioned scheme of arrangement by mid-February.

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