US: Shell shareholders vote for BG Group takeover despite opposition

Shell has won shareholder approval for its £35bn takeover of BG Group despite nearly a fifth of investors opposing the deal.

At a specially convened general meeting in The Hague on Wednesday, 83% of Shell shareholders voted for the acquisition, despite claims that the Anglo Dutch groupwas paying too much for its rival during a period of collapsing oil prices and should be investing instead in renewable energy.

Ben van Beurden, the Shell chief executive, expressed relief he had won the day, although for the merger to be consummated, he must also secure the support of BG investors at a separate meeting in London on Thursday.

“I am delighted with the positive shareholder vote and the confidence that shareholders have shown in the strategic logic of the combination of Shell and BG,” he said.

Van Beurden and Shell are struggling because the company has already warned it is heading for a 50% reduction in fourth-quarter profits and £5bn worth of asset writedowns because of low commodity prices.

Management expressed confidence that the price of oil would eventually bounce back, but Simon Henry, chief financial officer, admitted Shell – even without a merger – would face challenges if crude remained at $40 to $50 per barrel over a long period.

Full content: Oil Price

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