Shell to acquire BG Group in £47bn takeover

 

One iof the largest deals in oil sector for 20 years comes after fall in crude prices over past few months prompts speculation of more moves in industry  Royal Dutch Shell has agreed a £47bn ($70bn) takeover of gas group BG in one of the biggest deals seen in the oil and gas sector for a decade. It will create a company worth more than £200bn.

BG confirmed on Wednesday that it was offering a cash and shares deal worth £13.50 a share – a 50% premium on BG’s market value on Tuesday night, when news of the deal first leaked.
BG’s share price soared 42% to £13 on the news, while Shell shares fell 4% to £21.16. Shares in other energy stocks rose, with rival BP climbing 4.3% to 475p amid speculation that it could become the next target. BP is valued at around £86bn.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said: “The deal could prompt other companies who have been running the slide rule over potential targets to make their move.”