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FIRB give green light for Shell move on BG

Treasurer Scott Morrison, through the FIRB, has ticked off Shell's planned $70 billion takeover of BG Group.

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Source: AAP


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Royal Dutch Shell's $70 billion takeover of oil and gas rival BG Group has passed its final Australian regulatory hurdle, with approval from Treasurer Scott Morrison.

BG on Thursday confirmed Mr Morrison had approved the massive takeover through the Foreign Investment Review Board.

It follows approval in November from the Australian Competition and Consumer Commission.

The FIRB approval is the fourth of five regulatory clearances required for the takeover.

The final remaining pre-conditional clearance is from China's Ministry of Commerce.

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But importantly, the takeover will also require support from both BG Group and Shell's shareholders.

Shell owns a 50 per cent interest in coal seam gas company Arrow Energy, which produces gas in the eastern Australia's Surat and Bowen basins.

BG holds a majority stake in the giant Queensland Curtis Liquefied Natural Gas project.

Shell's takeover of BG, the biggest deal in the global energy sector in a decade, was first announced in April after crude oil prices nearly halved to below $US50 a barrel amid rising supplies and lacklustre demand.


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