Shell-BG deal clears last regulatory hurdle

The acquisition, worth about USD 70 billion when it was announced and the biggest in the sector in a decade, had already received mandatory and unconditional approvals from Australia, Brazil and the European Union.

Shell shares were little changes by 0815 GMT, while BG shares traded nearly 2 percent higher.

Last month, sources told Reuters that the Chinese Ministry of Commerce (MOFCOM) had pressed Shell to sweeten long-term LNG supply contracts as the world's top energy consumer faces a large surfeit over the next five years.

Since its announcement on April 8, when oil was at around USD 55 a barrel, Shell has had to battle a slump in oil prices and investor concerns over the financial merits of the deal in the face of an extended period of weak energy prices. (Graphic: Shell offer for BG Group.

Heralding a "more resilient and competitive" business, the Anglo-Dutch company slashed the combined group's planned investment program, highlighted cost savings of USD 3.5 billion and announced plans for USD 30 billion in asset disposals to pay for the acquisition while maintaining the cherished dividend.

With the regulatory approvals out of the way, Shell and BG turn their focus to shareholders and will publish within weeks a prospectus containing information on the deal and the change in the share structure and also announce dates for general meetings where the transaction will be put to vote.

"We will now seek approval from both sets of shareholders as we move toward deal completion in early 2016," Shell CEO Ben van Beurden said, according to the company statement.

The integration of the two companies has been planned by a joint committee in recent months but could encounter some difficulties as BG's small and relatively nimble operations are merged with Shell's much larger structure.

The deal could also result in job cuts where BG's 5,000 jobs overlap with Shell's nearly 100,000-strong work force.