Brazil’s Council for Economic Defence CADE has approved Royal Dutch Shell’s $70bn acquisition of UK based natural gas rival BG Group.
Expected to be completed by early next year, the deal has received preliminary approvals from the competition authority ‘without restrictions’.
A Shell spokesperson has confirmed the approval from CADE with about a 15 day appeal period, reports Reuters.
If no appeals are lodged or referrals made during the period, the clearance would be considered final.
The proposed transaction has already been approved by the US Federal Trade Commission in June.
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By GlobalDataIt, however, still needs clearance from European Union, Australia and China.
Shell and BG had announced the merger in April, a decision which has been affected by the declining global oil prices.
Both the firms have stakes in Brazil’s oil producing fields, with BG owning 25% percent of the Lula field and Shell having 20% interest in the Libra project.
Petroleo Brasileiro is the operating partner for BG and Shell in major offshore projects in Brazil.