Royal Dutch Shell Plc agreed to buy smaller rival BG Group [fortune-stock symbol= »BGG »] for $70 billion in the first oil super-merger in more than a decade to close the gap with the world’s largest oil firm U.S. ExxonMobil Inc. [fortune-stock symbol= »XOM »].
In a joint statement, the two firms said Shell would pay a mix of cash and shares that would value each BG share at around 1,350 pence, more than 50% over its average price during the last three months.
Britain’s BG had a market capitalisation of $46 billion as of Tuesday’s close, while Shell was worth $202 billion. Exxon, the world’s largest oil company by market value, was worth $360 billion.
« We have two very strong portfolios combining globally in deep water and integrated gas, » Shell’s CEO Ben van Beurden told a news conference.
The deal would give Anglo-Dutch Shell access to BG’s multi-billion dollar projects in Brazil, East…
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