Shell agrees to buy BG Group in mega energy deal

Royal Dutch Shell said it had agreed to buy BG Group for 47 billion pounds ($AU 91 billion) in the first oil super-merger in a decade.

Oil and gas giant Shell has been criticised for continuing to operate in the Russian gas market. Source: AAP

Royal Dutch Shell said it had agreed to buy BG Group for 47 billion pounds ($AU 91 billion) in the first oil super-merger in a decade.

In a joint statement, the two firms said that as part of the recommended deal Shell would pay 383 pence in cash and 0.4454 Shell B shares for each BG share. It said this represented a premium of around 52 percent to the 90 trading day average.

The deal will result in BG shareholders owning around 19 percent of the combined group.

(Reporting by Kate Holton; editing by Paul Sandle)