REUTERS
Royal Dutch Shell cleared the final regulatory hurdle for its takeover of BG Group after receiving the green light from China on Monday, leaving the deal on track for completion by early 2016 following shareholder votes, Reuters reported.
The combination will transform Shell into the world's top liquefied natural gas (LNG) trader and a major offshore oil producer focused on Brazil's rapidly-developing sub-salt oil basin, according to the report.
The acquisition, estimated at about $70 billion 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 grew 1.2%, while BG shares traded nearly 3% higher on news from the Chinese authorities.
Since its announcement on April 8, when oil was at around $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.
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.