Royal Dutch Shell agreed to buy smaller rival BG Group for 47 billion pounds in the first major energy industry merger in more than a decade, closing the gap on market leader Us Exxon Mobil after a plunge in prices.
The companies announced the £47 billion deal early Wednesday. It’s the biggest in the sector since Exxon bought Mobil in 1998, according to Dealogic. If completed, the purchase will add 25% to Shell’s oil and gas reserves and 20% to production.
The third-biggest oil and gas deal ever by enterprise value will bring Shell assets in Brazil, East Africa, Australia, Kazakhstan and Egypt.
“We stay very alert to value propositions, we’re watchful,” Exxon executive Jeff Woodbury said during an analyst call in February. “The real focus here is creating value, and we will pursue only those acquisitions that we think that have ultimate strategic value.”
Full Content: The Wall Street Journal
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Hess Shareholders Approve $53 Billion Merger with Chevron
May 28, 2024 by
CPI
EU Regulators Engage with Telegram as App Nears Critical Usage Threshold
May 28, 2024 by
CPI
EEX Offers Remedies to Address EU Antitrust Concerns Over Nasdaq Deal
May 28, 2024 by
CPI
BRG Expands European Competition Practice with New Expert Team in Brussels
May 28, 2024 by
CPI
UK Law Empowers Regulators to Fine Big Tech Without Court Approval
May 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Merger Guidelines Retrospective
May 21, 2024 by
CPI
Mergers of Complements
May 21, 2024 by
CPI
Personality Traits, Private Equity, and Merger Analysis
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Lessons in the Importance of Incipiency, Modern Economics, and Monopsony
May 21, 2024 by
CPI
The 2023 Merger Guidelines: Sharpening Merger Analysis
May 21, 2024 by
CPI