BG Group PlcOTCQX
Mon, Feb. 15, 5:45 AM
- The $53B mega deal - creating the world's biggest trader of liquefied natural gas - came into force today after shareholders waved through the tie-up at the end of January despite slumping oil prices.
- "We will now be able to shape a simpler, leaner, more competitive company, focusing on our core expertise in deep water and LNG," CEO Ben Van Beurden declared.
- Shell (RDS.A, RDS.B) has said it will cut more than 10K jobs from the combined group and sell $30B of assets over the next three years in order to finance the deal, buy back shares and support dividends.
Thu, Jan. 28, 9:58 AM
- BG Group (OTCQX:BRGXF, OTCQX:BRGYY) says its shareholders have voted in support of the takeover by Royal Dutch Shell (RDS.A, RDS.B), Reuters reports, all but completing the long-awaited merger.
- At a meeting in London, 99.5% of BG shareholders voted in favor of the merger, a day after 83% of Shell's shareholders approved the deal.
- BG CEO Helge Lund, who joined BG just weeks before the merger was announced, will step down; Shell exec Huibert Vigeveno, who headed the integration planning in recent months, will become transitional CEO.
Wed, Jan. 27, 7:40 AM| Wed, Jan. 27, 7:40 AM | 2 Comments
Thu, Jan. 14, 1:57 PM
- Royal Dutch Shell’s (RDS.A, RDS.B) deal to buy BG Group (OTCQX:BRGXF, OTCQX:BRGYY) is edging closer to completion despite some investor dissent and even as the spread between the deal price and BG’s current share price sits at a still-high 6%, WSJ's Helen Thomas writes.
- Thomas notes that Shell needs only 50% of voting shareholders to back the deal; turnout at Shell's annual general meeting tends to be only ~54%, and the figure could approach 45%-50% when considering that perhaps 6% of Shell’s stock has been borrowed by short sellers to balance long arbitrage positions in BG, which could be in the hands of trading desks or other institutions that are less likely to vote.
- "Even with a fat spread, the chances of this deal faltering at the final hurdle look slim," Thomas concludes.
Fri, Jan. 8, 2:41 PM
- Standard Life Investments, one of the biggest shareholders in Royal Dutch Shell (RDS.A, RDS.B), says it will vote against Shell’s plan to buy BG Group (OTCQX:BRGXF, OTCQX:BRGYY).
- Standard Life, which is asking Shell to re-negotiate the terms of the deal, holds 0.4% of Shell’s A shares and 1.7% of the B shares, making it the 11th-biggest shareholder.
- Earlier: Shell's deal for BG gains backing of key shareholder advisory firm
Fri, Jan. 8, 10:58 AM
- Royal Dutch Shell (RDS.A, RDS.B) wins the support of proxy advisory firm ISS for its takeover bid from BG Group (OTCQX:BRGXF, OTCQX:BRGYY), saying the deal has “compelling strategic rationale” and “significant positive economics to be realized within a relatively short time frame.”
- Thirty-five of the top 50 shareholders in Shell subscribe to ISS, so a positive recommendation is akin "to a top five shareholder publicly and vocally supporting the transaction,” says Fred Ward at Olivetree Financial.
- The spread between the value of BG’s share price and Shell’s offer for each BG share has widened to an unusually high 11%, and a widening spread could mean investors are not confident the deal will be approved; low oil prices and the Chinese market turmoil also may have damaged the deal’s prospects.
- Earlier: Shell set to secure investor approval for BG takeover, reports say (Jan. 7)
Thu, Jan. 7, 2:22 PM
- Royal Dutch Shell (RDS.A, RDS.B) is confident that shareholders will approve its takeover bid for BG Group (OTCQX:BRGXF, OTCQX:BRGYY) at a Jan. 27 meeting, Financial Times reports, even as crude oil prices languish near 12-year lows and several large Shell investors privately voice concerns over the economics of the proposed takeover.
- FT also reports that proxy adviser ISS is expected to recommend that investors support the deal.
- Reuters reports that in their final round of meetings with big investors, Shell execs are saying the BG deal can work even if oil prices average $50/bbl for two years, the company's lowest estimate so far.
- CFO Simon Henry reportedly is saying Shell will cut capital spending further below the planned $35B for 2016, delay share buybacks and extend scrip dividends, but will keep the size of its dividend unchanged.
Dec. 17, 2015, 4:53 AM
- Royal Dutch Shell's (RDS.A, RDS.B) takeover of BG Group (OTCQX:BRGYY) may look less attractive after the slide in oil prices but the fact the same investors own nearly half of both firms means the deal is still likely to go through.
- According to Reuters data, investors holding about 43% of Shell's shares also hold 53% of BG.
- Shareholders will be voting separately on the deal at meetings expected next month.
Dec. 14, 2015, 3:11 AM
- China has given unconditional clearance to a proposed merger between Royal Dutch Shell (RDS.A, RDS.B) and BG Group (OTCQX:BRGYY), clearing the final regulatory hurdle for the $70B tie-up.
- "We will now seek approval from both sets of shareholders as we move toward deal completion in early 2016," CEO Ben van Beurden declared.
- Following the transaction, Shell sees the elimination of 2,800 jobs, in addition to previously announced plans to reduce its headcount and contractor positions by 7,500 globally.
Dec. 2, 2015, 10:34 PM
- Royal Dutch Shell (RDS.A, RDS.B) says it's gotten final approval from Australia for its $70B takeover of BG Group (OTCQX:BRGYY), a move that was expected in time for Christmas.
- The OK came from Australia's Foreign Investment Review Board. "I am very pleased to receive this news, said Shell CEO Ben van Beurden. "The FIRB approval is an important step towards deal completion."
- When completed, the deal will create the UK's biggest public company.
- Previously: Shell-BG deal expected to win OK from China, Australia regulators (Nov. 30 2015)
Nov. 30, 2015, 11:49 AM
- Chinese and Australian regulators are expected to give the green light to Royal Dutch Shell’s (RDS.A, RDS.B) takeover of BG Group (OTCQX:BRGXF, OTCQX:BRGYY) before Christmas, according to The Telegraph, which reports that Shell CEO Ben van Beurden recently had direct meetings with the president of China’s ministry of commerce.
- China was originally believed to be viewing the deal as an opportunity to renegotiate long-term contracts between Shell and the country’s top energy producers, but Cnooc (NYSE:CEO) and China National Petroleum (NYSE:PTR) have pledged broad support in return for continued co-operation with Shell on projects around the world.
Nov. 30, 2015, 7:19 AM
- Chinese and Australian regulators are expected to give their blessing to Shell's RDS.A, RDS.B £55B takeover of BG Group (OTCQX:BRGYY) before Christmas, leaving the future of the deal resting squarely in shareholders' hands, The Telegraph reports.
- The tie-up, which will create Britain's largest public company, has been under mounting scrutiny in recent weeks as investors question whether Shell can justify pushing ahead, with oil prices remaining so suppressed.
Nov. 19, 2015, 7:57 AM
- Royal Dutch Shell's (RDS.A, RDS.B) proposed tie-up with BG Group (OTCQX:BRGXF, OTCQX:BRGYY) secured clearance yesterday from one of two Australian regulators but still requires approval from China, but Reuters reports that Chinese regulators are pressing the company to sweeten long-term gas supply contracts, which could cast new doubt on the near-term benefits of the deal.
- As the Chinese regulatory approval process entered its third and final 60-day phase earlier this month, the government asked Shell to review prices in LNG contracts worth tens of billions of dollars annually with China National Petroleum (NYSE:PTR), Cnooc (NYSE:CEO) and Sinopec (NYSE:SNP), according to the report.
- Shell officials are said to fear that a revision of the terms of the contracts could create a ripple effect around the world, further eroding gas prices.
Nov. 18, 2015, 6:54 PM
- Royal Dutch Shell (RDS.A, RDS.B) clears a major hurdle to its proposed $70B takeover of BG Group (OTCQX:BRGXF, OTCQX:BRGYY), winning approval from Australia's competition watchdog.
- The acquisition would be unlikely to substantially lessen competition in the wholesale natural gas market, in either Queensland or eastern Australia, the Australian Competition and Consumer Commission says.
- Shell and BG have said the decision was crucial, after having secured approvals from anti-trust authorities in Brazil, the EU and the U.S.; the deal still needs approval from China and Australia's Foreign Investment Review Board to go ahead as planned in early 2016.
Nov. 16, 2015, 10:53 AM
- Qatar's sovereign wealth fund has sold shares in Royal Dutch Shell (RDS.A, RDS.B) and BG Group (OTCQX:BRGXF, OTCQX:BRGYY) worth nearly £1B in recent weeks, raising fresh questions over whether the proposed merger has the support of major shareholders, The Telegraph reports.
- The Qatari fund sold ~43M shares in BG worth ~£550M and a further 24M shares in Shell with a value of ~£421M over a period of less than three weeks between the end of October and the first week of November.
- The fund is one of Shell’s biggest investors, with a 4.9% stake, and also holds a 1.7% stake in BG; Qatar also is one of the world’s biggest producers of liquid natural gas, making its support for the merger important to both sides.
Nov. 3, 2015, 3:57 AM
- Royal Dutch Shell (RDS.A, RDS.B) has announced plans to increase benefits from its proposed $70B acquisition of BG Group (OTCQX:BRGYY), which the company said would work with oil prices in the mid-$60s per barrel.
- The Anglo-Dutch group said it will reduce costs by $11B in 2015, and expects the merger to create operating cost savings of $2B and synergies of $3.5B.
- Shell hopes to complete the deal in early 2016.