Shell to buy BG Group for $70 billion in oil super-merger

Royal Dutch Shell said on Wednesday it had agreed to buy BG Group, the British oil and gas firm, for 47 billion pounds (US $70 billion) in the first oil super-merger in a decade.

In a joint statement, the two oil and gas companies said that as part of the recommended deal Shell would pay 383 pence in cash and 0.4454 Shell B shares for each BG share. It said this represented a premium of around 52 per cent to the 90 trading day average.

The deal will result in BG shareholders owning around 19 per cent of the combined group firm.

(Reuters)