Australia Defers Decision on Shell's Takeover of BG
September 02 2015 - 10:20PM
Dow Jones News
MELBOURNE, Australia--Australia's antitrust regulator has given
itself more time to consider Royal Dutch Shell PLC's planned
takeover of U.K.-based oil-and-gas firm BG Group PLC.
Australia and China are the two regulatory hurdles yet to be
cleared after Europe's highest antitrust regulator approved the
deal unconditionally on Wednesday.
The Australian Competition & Consumer Commission was due to
announce its decision on the deal on Thursday, but in a notice on
its website said the date had been pushed back to Sept. 17 to allow
additional time to consider the proposal.
Shell and BG agreed the US$70 billion cash and share deal in
April and Australia's regulator began its review on June 11,
focusing in particular on competition between the companies, the
effect a tie-up would have on prices, and how easy it would be for
existing competitors to expand or new competitors to enter the
market following a merger.
The ACCC in preparing for its review had noted the companies
overlap in areas including the production and wholesale supply of
natural gas in eastern Australia.
BG has gasfields and production facilities in the Surat Basin
and a majority interest in supplying gas to the US$20.4 billion
QCLNG liquefied natural gas development in Queensland, plus
exploration rights in the Bowen and Cooper Basins.
Shell through its Arrow Energy joint venture with PetroChina Co.
is looking at options to sell gas from coal seams in Queensland,
sells gas through a venture with AGL Energy Ltd., plus is involved
in a number of gas exploration and production projects in Western
Australia
The European Commission concluded after a brief investigation
that the deal wouldn't allow Shell to influence the prices of oil
and natural gas in Europe, and that those markets would remain
competitive.
Shell's chief executive, Ben van Beurden, said the EU's decision
kept the companies on track to close the merger in early 2016, as
planned. Shareholders still need to vote on the deal and are
expected to receive formal documents late this year or early next
year.
U.S. antitrust authorities approved the deal in June and
Brazil's competition authority gave its approval in July.
Write to Robb Stewart at robb.stewart@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 02, 2015 22:05 ET (02:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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