Brazilian regulatory approval brings Shell’s $70bn purchase of BG Group another step closer

Brazilian regulatory approval brings Shell’s $70bn purchase of BG Group another step closer

San Francisco: Shell on Wednesday overcame antitrust concerns in Brazil and received regulatory approval for its $70bn purchase of BG Group.

The regulatory body, known as Cade, found that the deal will not undermine competitiveness in Brazil’s oil and gas market as other producers would still have a higher market share than the combined company.

There will be a 15-day waiting period to allow for any appeals before Cade’s decision becomes final.

BG Group is a British multinational oil and gas company headquartered in Reading and with a substantial Brazil portfolio.

There are still a few more hurdles to clear before what would be the oil industry’s biggest deal in a decade becomes final.

If it foes go through it could see Brazil account for 20 percent of Shell’s output by the end of the decade.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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