BG Group backs £47bn Shell mega-merger
Energy production giant BG Group, formerly part of British Gas, is recommending that its shareholders accept a £47bn takeover offer from Royal Dutch Shell following a collapse in oil prices.
If the multi-billion pound deal goes through it would create a combined entity valued at close to £180bn, overtaking HSBC at a single stroke to become the largest company on the FTSE 100.
The bid represents a 52 per cent premium to BG’s 90 day trading average and would see shareholders own around 19 per cent of the combined group.
BG Group chief executive Helge Lund said the deal ‘delivers attractive returns to shareholders and has strong strategic logic.
"BG's deep water positions and strengths in exploration... will combine well with Shell's scale, development expertise and financial strength."
It would be the 13th largest merger in history, paid for through a mixture of cash and shares, though the market is still waiting to see if rival challengers such as Exxon Mobil mount an improved offer.