Shell-BG Deal Gets Final Australian Regulatory Approval

Royal Dutch Shell on Thursday announced that its takeover of BG Group has received approval from the Australian Foreign Investment Review Board (FIRB).

Thursday’s approval follows unconditional approval by the Australian Competition and Consumer Commission (ACCC) on 19 November 2015 and completes the regulatory review process in Australia, Shell stated.

Together with the previously announced clearances in Brazil and EU, four of the five pre-conditions to the combination have now been satisfied, the company said, adding that the one remaining pre-conditional clearance is from China's Ministry of Commerce (MOFCOM).

Commenting on the FIRB clearance Shell CEO, Ben van Beurden, said: "The addition of BG's integrated gas assets in Australia to Shell's global portfolio is one of the main strategic drivers behind the recommended combination. The Shell-BG combination is a sign of Shell's confidence in the Australian economy. It is also a springboard to change Shell into a simpler, more profitable and resilient company. We remain on track to complete the deal in early 2016."

In April, Royal Dutch Shell agreed to buy BG Group in a deal close to 47 billion pounds ($70 billion).

Shell said the payment would be combination of stock and cash. For every share held, BG shareholders would get 3.83 pounds in cash and 0.45 Shell B shares.