Shell to buy BG Group in £47bn super-merger

clock

Royal Dutch Shell has agreed to buy BG Group for £47bn in one of the largest deals of all time.

The transaction, which values BG Group at a near 50% premium to its 7 May closing market cap of £31bn, will see the firm combine with Shell to form a £200bn company. Confirming the deal this morning, the two energy companies said BG shareholders will receive 383p in cash for each share they own, plus 0.4454 Shell B Shares. This values each BG share at around £13.50 per share, and is a 52% premium to the stock's 90-day weighted average price. BG shareholders will end up owning about 19% of the combined group as part of the acquisition, which is the first indication that plunging com...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets