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    market news

    ACCC Concerned about Shell's Proposed Takeover of BG Group

    Kristen Moran
    Sep. 17, 2015 10:52AM PST
    Oil and Gas Investing

    Mining Weekly reported that The Australian Competition and Consumer Commission (ACCC) is concerned about the proposed acquisition of BG Group (LSE:BG) by Royal Dutch Shell (NYSE:RDS.A,LSE:RDSA).

    Mining Weekly reported that The Australian Competition and Consumer Commission (ACCC) is concerned about the proposed acquisition of BG Group (LSE:BG) by Royal Dutch Shell (NYSE:RDS.A,LSE:RDSA).
    As quoted in the market news:

    Earlier this year, Shell launched a $70-billion takeover for liquefied natural gas (LNG) producer BG. The companies’ combined deep-water and integrated gas businesses could potentially each generate between $15-billion and $20-billion in yearly cash flow, while upstream and downstream engines could potentially further generate a combined $15-billion to $20-billion in yearly cash flow.
    Shell currently has a 50% interest in Queensland coal-seam gas producer Arrow Energy, whose gas reserves constitute the largest uncontracted gas reserves in eastern Australia, and that were not aligned with an LNG project.
    The ACCC said in a statement this week that it was concerned that by aligning Shell’s interest in Arrow Energy with BG’s LNG facilities in Queensland, the proposed acquisition could change Shell’s incentives in such a way that it would prioritise supply to BG’s LNG facilities over competing gas users.

    Click here to read the full Mining Weekly report.

    nyse:rds.amarket newsaustraliagas reservesqueenslandliquefied natural gas
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