Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: MOFCOM clears Shell’s proposed acquisition of BG Group, (Dec 14, 2015)
Organizations Mentioned:BG Group plc | Royal Dutch Shell plc
By Michael Menzhuber, J.D., LL.M.
The Chinese Ministry of Commerce (MOFCOM) has given its unconditional merger clearance to Royal Dutch Shell’s combination with BG Group plc. The MOFCOM clearance, which follows previously announced approvals in Brazil, the EU and Australia, is the final pre-conditional approval required for the combination.
Shell is a global group of energy and petrochemicals companies. Similarly, BG is an international explorer and producer of oil and gas.
According to Shell CEO, Ben van Beurden, now that all the pre-conditional approvals have been received, the next step is to seek approval from both sets of shareholders as the recommended combination moves toward deal completion.
The completion of Shell’s recommended combination with BG is anticipated to be completed in early 2016. In advance of its completion. Shell has announced further details of the proposed operational and administrative restructuring under consideration. The restructuring, according to Shell, will be required to achieve the expected benefits of the recommended combination, including previously disclosed and reported-on pre-tax synergies of $3.5 billion.
Shell’s expectation is that BG’s business would be integrated into its businesses and it proposes that office consolidation would be undertaken, where practical, in certain locations. Following the deal completion, Shell will undertake a comprehensive review of office footprint rationalization in the United Kingdom.
Approximately three percent of the total combined group workforce is expected to be affected by the reorganization with the resulting overall potential reduction of approximately 2,800 jobs. These reductions are in addition to previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally.
The proposed changes are subject to: (1) deal completion; and (2) engagement with affected employees and relevant employee representatives. The details of the proposed operational and administrative restructuring will continue to be worked on and developed as part of ongoing integration planning.
Companies: Royal Dutch Shell plc; BG Group plc
News: AcquisitionsMergers Antitrust