A PYMNTS Company

UK: Shell initiates first major energy merger in 10 years

By  |  April 8, 2015

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.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    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.