REUTERS
Europe's largest oil company Royal Dutch Shell PLC on Monday completed its roughly $50 billion acquisition of BG Group PLC, giving the Anglo-Dutch oil company a dominant footprint offshore Brazil – one of the most prized oil plays in the world, Gazeta.ru reported with reference to MarketWatch.
On Monday, speaking from Brazil, Shell Chief Executive Ben van Beurden said it was a "momentous day" and that the combined company will be "more attractive for shareholders," "more resilient" to fluctuating oil prices and "more predictable" for investors, according to MarketWatch.
The acquisition of UK-based BG will bolster Shell's already significant position in the fast-growing liquefied natural gas (LNG) market and turn it into the largest foreign oil company in Brazil, according to the report.
Brazil is a "top three" country for Shell, Mr. van Beurden said, and in terms of oil exploration and production Brazil will be "the most valuable country in our portfolio," adding that Brazil "will remain a key destination country for us for investment dollars for at least a decade."
Royal Dutch Shell received clearance from the Australian Competition and Consumer Commission (ACCC) for its proposed takeover of rival BG Group PLC in November. The markets watchdog concluded that the tie-up was unlikely to push prices up in local gas markets after a drawn-out review process.
Read alsoShell-BG deal wins green lightRegulatory concerns and low energy prices have dogged the Shell-BG deal since it was unveiled in April 2015.
Shell management expects that the multi-billion merger will create the world's largest LNG company. The combined group's equity LNG capacity is expected to be 44 mtpa in 2018, compared to Shell’s 26 mtpa in 2014.