Talks between Royal Dutch Shell and BG Group are at an advanced stage, as the two firms look to conduct the first super major deal in a decade.
Royal Dutch Shell is looking to buy BG Group, which has a market value of $46bn, according to a company statement.
The deal would give Shell access to BG’s multi-billion dollar projects in Brazil, East Africa, Australia, Kazakhstan and Egypt. Shell would also gain access to BG’s numerous liquefied natural gas (LNG) projects, which are said to be amongst the most ambitious in the world.
The deal would be the world’s fourth largest since 1996 when BG’s net debt of about $12 billion is included, according to data published by Reuters.
BG has recently cut its capital expenditure by 36%. The talks come as the British firm has been plagued by delayed payments in Egypt and been forced to write off $6bn off the value of it oil and gas business.
