$70bn Shell-BG merger wins approval from US FTC

US Federal Trade Commission has given anti-trust regulatory clearance to Royal Dutch Shell’s proposed $70bn acquisition of UK based natural gas firm BG Group.

The deal is yet to undergo review in order to secure approvals from company shareholders and other relevant anti-trust and regulatory authorities, especially in the countries BG operates in, including the European Union, China, Australia and Brazil.

Shell and BG expects to close the deal by early next year. The deal was first disclosed in April this year.

Shell chief execuitve Ben van Beurden said: "Securing early termination of the US antitrust waiting period from the FTC at this early stage is a clear demonstration of the good progress we’re making on the deal.

"We’re well underway with the anti-trust and regulatory filing processes in relevant jurisdictions around the world and we’re confident that, following the usual thorough and professional review by the relevant authorities, the deal will receive the necessary approvals.

"We remain on track for completion in early 2016."

Shell’s merger decision with BG was influenced by the dip in global oil prices.

The deal will integrate BG’s assets across Brazil, East Africa, Australia, Kazakhstan and Egypt with Shell’s portfolio.

BG CEO Helge Lund said: "BG’s deep water positions and strengths in exploration, liquefaction and LNG shipping and marketing will combine well with Shell’s scale, development expertise and financial strength.

"The consolidated business will be strongly placed to develop the growth projects in BG’s portfolio. The transaction will take time to complete, during which my team and I will remain committed to BG and our shareholders, and to safelydelivering our 2015 business plan."