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China: £55bn Shell merger expected to go ahead

 |  November 30, 2015

Chinese and Australian regulators are expected to give their blessing to Shell’s £55bn mega takeover of BG before Christmas, leaving the future of the deal resting squarely in shareholders’ hands.

Shell chief executive Ben van Beurden has reportedly had direct meetings with the head of China’s ministry of commerce, Gao Hucheng. Shell has put forward remedy proposals, sources claimed, in response to competition concerns from Beijing.

“We are working positively with Mofcom and are hopeful of a positive decision, but it is up to them to decide and we expect they will carry out a thorough and professional review,” Shell said.

The tie-up, which will create Britain’s biggest public company, has been under mounting scrutiny in recent weeks as regulators question whether Shell can justify pushing ahead, with oil prices remaining so suppressed.

However, the Sunday Telegraph reports Shell is expected to assuage key concerns and cement the deal.

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