Shell plans to shed 2800 jobs after buying BG Group

Following previous approvals from Australia, Brazil and the European Union, the clearance marked the final pre-conditional approval required for the tie-up.

“We will now seek approval from both sets of shareholders as we move toward deal completion in early 2016”, Mr. van Beurden said in a statement.

Energy major Shell’s vast takeover of British rival BG Group has won approval from the Chinese government, it said Monday.

The Chinese Ministry of Commerce cleared the planned merger between the two energy companies, paving the way for the largest integration of its kind since Exxon and Mobil merged in the late 1990s.

“The deal doesn’t make financial sense at the current oil price”.

Oil has dropped to the lowest in nearly seven years as the Organization of Petroleum Exporting Countries refuses to curb output to tackle a supply glut. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seventeen have given a buy rating to the stock. Brent crude, the worldwide benchmark for oil prices, was trading at less than $US38 a barrel on Monday morning, down about 33 per cent since the deal was announced on April 8.

“While Shell may have paid a early high price for BG, the logic behind the deal is sound”, Bank of Montreal’s Warn said by phone from London.

Shell offered to pay 0.4454 of its B shares and 383 pence in cash for each BG share. Jefferies Group dropped their price target on shares of Royal Dutch Shell plc to $63.20 in a research report on Friday, September 11th.

Speaking before Shell announced the plans for job cuts, Mr Cumming told the ‘s Today programme that – given the low oil price – possible options included Shell walking away from the deal, Shell changing the terms of the deal, or shareholders rejecting the deal.

The deal could also result in job cuts where BG’s 5,000 jobs overlap with Shell’s almost 100,000-strong work force.