Megabucks merger as BG agrees to £47bn Shell buyout

Shell emphasised that it was not looking to quit the North Sea
Shell emphasised that it was not looking to quit the North Sea

The man who took charge of the troubled BG Group two months ago stands to earn up to £32 million after the FTSE 100 oil and gas company agreed to a takeover by Royal Dutch Shell.

In the biggest deal yet between two London-listed companies, Shell said that it was paying £47 billion for BG in a mixture of cash and Shell shares, representing a 50 per cent premium to BG’s closing share price on Tuesday.

Shares in Shell closed down more than 4 per cent, off 92¼p at £21.16¼, as the City gave the prospect of extra risk and diminished earnings in the near term a cool reception. Shares in BG, however, surged more than 38 per cent, closing 346p higher at £12.56½.

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