Royal Dutch Shell to Buy BG Group for Nearly $70 Billion
Royal Dutch Shell said on Wednesday that it had agreed to buy the BG Group for nearly $70 billion.
Shell said that it would pay for the acquisition with 70 percent of its own shares and 30 percent in cash. The price is a 50 percent premium to BG’s closing share price on Tuesday, Shell said.
BG, which was once part of British Gas, is attractive to Shell because it is a major player in liquefied natural gas, a fuel whose use is growing fast though prices have recently slumped. Shell has invested heavily in the L.N.G. business.
If completed, the sale would be a rare bright spot for energy deal makers, as oil and gas companies have largely hunkered down while petroleum prices have plunged.
Potential sellers have been leery of selling during what they consider a temporary dip, creating an often unbridgeable gap with interested buyers.
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http://www.nytimes.com/2015/04/09/business/dealbook/royal-dutch-shell-bg-group.html?emc=edit_na_20150408
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