Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Early termination of HSR Act waiting period granted for Shell–BG buy out, (Jun 17, 2015)
Organizations Mentioned:BG Group plc | Royal Dutch Shell plc
By Linda O’Brien, J.D., LL.M.
The FTC has allowed for the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements (HSR) Act with respect to Royal Dutch Shell plc’s pending acquisition of BG Group plc. The $70 billion merger, which is expected to be completed in 2016, will create one of the world’s largest publicly traded oil and gas providers.
As announced on April 8, 2015, Shell has agreed to acquire all of the outstanding BG shares for cash and Shell stock. The acquisition will add to Shell’s proved oil and gas reserves and production, and will provide enhanced positions in competitive new oil and gas projects, particularly in Australia liquefied natural gas (LNG)and Brazil deep water.
Termination of the HSR waiting period satisfies one of the conditions required for completion of the transaction, which remains subject to antitrust and regulatory approvals in all of the countries in which BG has operations.
Shell is a multinational oil and gas company, headquartered in the Netherlands and incorporated in the United Kingdom. Founded in 1907, the company is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation, and trading.
Created in 1997, BG Group is a British multinational oil and gas company, headquartered in the United Kingdom. It has operations in 25 countries across Africa, Asia, Australasia, Europe, North America, and South America. The company has a major liquefied natural gas business and is the largest supplier of LNG to the United States.
Companies: Royal Dutch Shell plc; BG Group plc
News: AcquisitionsMergers Antitrust FederalTradeCommissionNews