News 2015
April 2015Shell
The Royal Dutch Shell purchases BG Group, the British oil and gas company, for 47 bln pounds (70 bln USD), reported both companies as of April 8. The deal is the largest among all the world’s companies since the beginning of the year and the most expensive in the oil industry over the last decade.
It will allow Shell to increase for 25% its proved reserves of oil and gas, to join new multi-billion dollar projects, including gas liquefaction plants in Australia, as well as development of deep water fields in Brazil, and to reduce the difference in the market value with the world's largest oil company, ExxonMobil.
The market capitalization of the Shell is equal to 202 bln USD, BG-46 bln USD and ExxonMobil-360 bln USD. BG has also the projects in East Africa, Kazakhstan and Egypt. Shell will pay with its cash funds and shares at the rate of 1.350 pence per share, representing a premium of about 52% for an average price of shares over the last 90 sessions.
The shareholders of BG will own about 19% of the shares of the merged company. Shell will pay a dividend of $ 1.88 per share in 2015, and at least as much as in 2016. In 2017-2020 the Shell company plans to purchase the shares for at least 25 bln USD.