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On Wednesday morning, Royal Dutch Shell (RDS-A ) announced that it has agreed to acquire British oil and gas company BG Group in a blockbuster oil industry deal.
Royal Dutch Shell has agreed to acquire BG Group for 47 billion pounds, or $69.78 billion in a cash and stock deal.
This deal, which is one of the largest deals in the last two decades, is expected to close in early 2016.
RDS-A’s CEO commented: “This is an important transaction for Shell, accelerating the delivery of our strategy for shareholders. The result will be a more competitive, stronger company for both sets of shareholders in today’s volatile oil price world.”
This deal was announced after the oil and gas has struggled to maintain revenues as oil prices decline. The transaction is expected to add 25% to oil and gas reserves and 20% to production.
Shares of RDS-A were down $1.36, or 2.20% during premarket trading Wednesday. The stock is down 7.47% YTD
Royal Dutch Shell (RDS-A ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.