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Shell's takeover of BG Group gets EU green light

Xinhua, September 3, 2015 Adjust font size:

Competition regulators of the European Union approved the acquisition of the BG Group by Royal Dutch Shell on Wednesday, saying the transaction would not raise competition concerns.

The takeover would not lead to Shell benefiting from market power in a number of markets, namely oil and gas exploration, the liquefaction of gas and the wholesale supply of liquefied natural gas (LNG), the European Commission concluded after investigations.

Moreover, Shell would be unable to shut out its competitors from access to its liquefaction facilities that supply LNG into the European Economic Area (EEA) or from gas transportation and processing infrastructure in the North Sea, it said in a statement.

The decision is a boost for Shell's hopes of clearing all the regulatory hurdles for its agreed takeover of British-based oil and gas firm BG Group.

The acquisition, announced in April, is expected to close in early 2016. Shell has already received the green light from Brazilian and U.S. regulators, but still requires mandatory approvals from authorities in Australia and China.

Royal Dutch Shell is a global group of energy and petrochemical companies with business activities including oil and gas exploration, production and marketing.

BG Group has two principal business areas: the upstream gas business segment and LNG shipping and marketing business.

The takeover, announced in April, is one of the largest energy deals in many years and is expected to boost Shell's oil and gas reserves by 25 percent and increase its annual energy output by 20 percent. Endit