Royal Dutch Shell to buy BG Group in $71b deal

Royal Dutch Shell says it has agreed to buy oil and gas exploration firm BG Group in a deal that values the business at $71.12 billion (£47 billion), reports BBC.
The two firms say they have reached agreement on a cash and shares offer which gives investors a 50 per cent premium on BG Group's share price on 7 April.
The deal could be one of the biggest of  2015 and could produce a company with a value of more than £200 billion ($296 billion).
BG Group's shares opened up 42 per cent on the London Stock Exchange at 1,293.5p.
Shell's £177 billion market capitalisation dwarfs that of BG, which now stands at £31billion after a 20 per cent  fall in its share price over the past year.
BG Group is the UK's third largest energy company, and currently employs about 5,200 people in 24 countries.
It was created in 1997 when British Gas demerged into two separate companies: BG and Centrica.
BG took control of exploration and production while Centrica took charge of the UK retail business of the former British Gas.
In 2000, BG split into BG Group and Lattice Group.

Royal Dutch Shell to buy BG Group in $71b deal

Royal Dutch Shell says it has agreed to buy oil and gas exploration firm BG Group in a deal that values the business at $71.12 billion (47 billion), reports BBC. The two firms say they have reached agreement on a cash and shares offer which gives investors a 50 per cent premium on BG Groups share price on 7 April. The deal could be one of the biggest of 2015 and could produce a company with a value of more than 200 billion ($296 billion). BG Groups shares opened up 42 per cent on the London Stock Exchange at 1,293.5p. Shells 177 billion market capitalisation dwarfs that of BG, which now stands at 31billion after a 20 per cent fall in its share price over the past year. BG Group is the UKs third largest energy company, and currently employs about 5,200 people in 24 countries. It was created in 1997 when British Gas demerged into two separate companies: BG and Centrica. BG took control of exploration and production while Centrica took charge of the UK retail business of the former British Gas. In 2000, BG split into BG Group and Lattice Group.