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Shell Launches Agreed £47Bn Bid For Uk Gas Producer Bg Group

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http://www.theguardian.com/business/2015/apr/07/shell-gas-bg-group-takeover

Oil giant Royal Dutch Shell has agreed a £47bn takeover of gas group BG in one of the biggest deals seen in the oil and gas sector in the last 20 years.

BG confirmed on Wednesday that it was offering a cash and shares deal worth £13.67 a share - a huge premium on BG’s market value on Tuesday night, when news of the deal first leaked.

Ben van Beurden, chief executive of Shell, said: “Bold, strategic moves shape our industry. BG and Shell are a great fit. This transaction fits with our strategy and our read on the industry landscape around us.”

Shell chairman, Jorma Ollila, said the deal was an important one for Shell: “The result will be a more competitive, stronger company for both sets of shareholders in today’s volatile oil price world.”

The transaction will be the biggest this year and the fourth largest oil and gas deal globally since 1996.

Another big mega merger announced. The only way to increase profits is to take over a rival?

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They're welcome to BG. Bunch of shysters.

Tried to con Mrs M into shelling (sorry) out £4k for a shit boiler. Managed to get a decent one fitted for half that!

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They're welcome to BG. Bunch of shysters.

Tried to con Mrs M into shelling (sorry) out £4k for a shit boiler. Managed to get a decent one fitted for half that!

Was that BG or British Gas/Centrica? They're not the same company.

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They're welcome to BG. Bunch of shysters.

Tried to con Mrs M into shelling (sorry) out £4k for a shit boiler. Managed to get a decent one fitted for half that!

BG is not British Gas

(I worked at the BG offices in Reading and kept asking where British Gas was too)

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Price is back to just below where it was last June before the oil price collapsed.

Shell must feel they're buying heavily discounted assets on a long horizon.

http://stockcharts.com/h-sc/ui?s=BG.L&p=W&yr=5&mn=0&dy=0&id=p95089921763

IIRC BG's big plays are offshore Brazil, Santos Basin. In conjunction with Petrobras who have been getting a bit of media attention recently. These are complex geology, offshore and some deep water - ie expensive to develop. But they are big.

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BG is not British Gas

(I worked at the BG offices in Reading and kept asking where British Gas was too)

Ah, apologies. Was British Gas, obviously!

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This is a smart move to buy more energy shares at near cyclical lows

The deal very much still on.

Energy sector very much propping up the FTSE 100 this morning with the two concerned parties Royal Dutch Shell and BG up 2% with a rise in oil to $65 (Brent).

Shell still trading at almost 12 month lows, however, and the p/e and yield (7%) look tempting, may be we are at the cyclical low for energy company valuations.

The price of oil aside, the value of Royal Dutch shell looks like a complete nut job....100 billion current assets, 350 billion with fixed assets and a market cap of 170 billion. On those figures you could liquidate it and get your money back. And oil forceast to rise to $80 a barrel by the year end. You'd think there was some excuse for these Equity valuations , like you could get 10% on sovereign bonds, instead they are charging you to hold your money with negative real yields.

https://www.fool.co.uk/investing/2015/06/22/should-you-buy-bp-plc-royal-dutch-shell-plc-or-even-bg-group-plc/

Edited by crashmonitor

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