Oil and gas company Royal Dutch Shell has secured clearance from the Chinese Government for its proposed $70bn acquisition of the UK-based BG Group.
The company’s latest unconditional merger clearance from the Chinese Ministry of Commerce (MOFCOM) follows the recent approvals from authorities in Australia, Brazil and the European Commission.
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Shell said in a statement: "Following previously announced approvals in Brazil, the EU and Australia, MOFCOM clearance marks the final pre-conditional approval required for the combination."
In case the planned takeover of BG Group proceeds, Shell said it will cut 2,800 jobs worldwide, which represents about 3% of the combined group’s workforce.
The merger between both companies is expected to be completed next year.
In advance of completion of its recommended combination with BG Group, Shell has proposed further operational and administrative restructuring, which is under consideration.
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By GlobalDataThe company plans to go ahead with the restructuring in a bid to achieve the expected benefits of the recommended combination, including previously reported-on pre-tax synergies of $3.5bn.
Shell noted that the changes are subject to completion of the transaction, engagement with affected employees, as well as relevant employee representatives.
Image: Shell head office, Carel van Bylandtlaan, The Hague. Photo: courtesy of PL van Till via Wikipedia.
