Deals
Shell Needs to Repay Investors Who Backed Biggest Ever Wager
- Takeover of BG is approved by shareholders from both companies
- Combined entity to become second-biggest non-state oil company
Shell’s BG Group Deal – What Would the Benefits Be?
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Royal Dutch Shell Plc is under pressure to reward the faith of the more than 80 percent of shareholders who shrugged off the risks from slumping oil prices to back its record acquisition of BG Group Plc.
That won’t be easy: the rout in crude has cut the value of Europe’s biggest oil company to the lowest in more than 10 years and raised investor concerns that its dividend is unsustainable. Chief Executive Officer Ben Van Beurden, who expended a lot of political capital convincing investors that BG will help Shell ride the downturn, has to deliver promised benefits from liquefied natural gas to deepwater oil production as billions of dollars of cash flow is choked off.