Shell buy Bg for £47 billion (64,34 billion euros), against the 46 billion of the Stock Exchange value recorded yesterday. The Anglo-Dutch oil company and its British competitor announced it in a joint statement, after rumors reported by the Wall Street Journal.
The signing of the agreement marks the first maxi-merger of Shell for 10 years now. The goal is to expand gas production by bridging the gap with ExxonMobil.
The two companies explain that based on the agreement, Shell will pay a mix of cash and shares for each BG share for around £1,35, a premium of around 52% on the average of 90 trading days on the exchange.
The two groups confirmed that Shell will pay a dividend of $1,88 for ordinary shares in 2015 and at least the same amount in 2016.
BG shareholders will own approximately 19% of the combined group.
Shell should start a program buyback in 2017 of at least $25 billion for the period 2017-2020.
