In one of the biggest deals of the year, Shell buys British … – Univision

                                 

Royal Dutch Shell has agreed to acquire BG Group for 47,000 million pounds -equivalent dólares– 69,700 million, according to the two companies announced Wednesday. The operation gives the large oil Shell larger in global markets natural gas to the decline in oil prices participation.

 

The boards of Shell and BG Group reached an agreement on the amount and conditions of the transaction. “The result will be a more competitive and robust for all our shareholders in the current context of volatile oil prices now,” said Jorma Ollila, Chairman of Shell.

 

The two companies highlight their complementarity as BG Group, emerged from the former British Gas, is well established in Australia and Brazil, have an important activity in the production of Liquefied Natural Gas (LNG) and in deepwater exploration.

 

Shell offers to shareholders of BG Group pay part of the acquisition in cash and the other in shares, which would make them owners of 19% of the capital of the new group.

 

At the same time, Shell will launch a program to purchase its own shares for an amount of 25,000 million between 2017 and 2020.

 

“The bold, strategic decisions shape our industry,” Shell chief executive, Ben van Beurden said. “BG and Shell make a great couple. This transaction fits our strategy and our reading of the industry landscape in our environment.”

 

Van Beurden said that BG is a good complement to Shell for the future.

 

An adverse context

 

“Add the competitive positions of natural gas from BG makes sense at the strategic level, with a view to long-term growth in demand we anticipate for this fuel cleaner-burning” BG said.

 

Also BG chief executive Helge Lund said his company would benefit from the acquisition.

 

“BG positions in deepwater and strengths in exploration, liquid, liquefied natural gas and marketing will combine well with the scale of Shell, experience in development and financial strength” he said.

 

Other major energy companies have recently chosen acquisitions, as the oil services group Halliburton, which recently bought the rival Baker Hughes by 35,000 million, or Spanish Repsol, which it acquired last year Talisman Energy of Canada 8,300 million.

 

The analyst Virenda Chauhan, Energy Aspects of the company, told Efe to the level that is currently oil prices makes it more “attractive” than sector companies come to negotiate purchase agreements, as there are companies that are struggling with cash flow.

 

BG Group, headquartered in Reading, just outside London, is energy-third of the UK and employs about 5,200 people in 24 countries, with major projects in Brazil and Australia.

 

The company was formed in 1997 when British Gas (privatized in 1986 during the government of then Prime Minister Margaret Thatcher) was separated to form two companies. BG Group and Centrica

 

The first became responsible for exploration and production, while the second took responsibility in the retail energy sector in the UK.