Shell and BG Shareholders to Vote on Deal at End of Januaryby
Investors holding 75% of BG shares must vote in favor of deal
Shell won Chinese approval for purchase of BG this month
Shareholders of Royal Dutch Shell Plc and BG Group Plc are expected to vote on Jan. 27 and Jan. 28 on the companies’ planned combination announced eight months ago.
Shell and BG plan to publish shareholder documents as soon as Tuesday, the companies said Monday in a regulatory statement. In BG’s case, votes in favor must represent at least 75 percent of the total value of BG shares. Shell requires 50 percent backing.
Shell, Europe’s biggest oil company, won Chinese antitrust approval for its purchase of Reading, England-based BG this month, clearing the last regulatory hurdle for the deal.
The takeover, valued at about $70 billion when it was announced in April, has come under scrutiny as crude prices slumped below $40 a barrel amid a global oversupply. About 2,800 jobs, or 3 percent of the total workforce of the two companies, will be cut after the combination, Shell has said.
BG is trading at about 919 pence in London, having risen 7.8 percent since news of the deal first broke. Shell is at 1,454 pence, having tumbled 28 percent in the period.