LNG player BG said that the $70 billion takeover offer for the company to be made by oil and gas giant Shell has received unconditional merger clearance from the European Commission.
The approval is one of the five regulatory clearances that are pre-conditions to the combination and this is the second pre-condition to be satisfied, following the clearance obtained from the Brazilian competition authority, CADE, in July, BG said on Wednesday.
Other pre-conditional approvals are required from Australia and China.
“Receiving clearance from the European Commission underlines the good progress we are making on the deal. The recommended combination with BG is a springboard to change Shell into a simpler and more profitable company, making Shell more resilient in a world where oil prices could remain low for some time,” Shell CEO, Ben van Beurden, said.
The proposed deal, which would create one of the largest LNG players the world has ever seen, is on track to complete in early 2016.
LNG World News Staff; Image: BG