Shareholders to Vote on Shell-BG Merger

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Shell Gas Station

The troubled $51bn merger between shell and BG Group is set to face an investor vote in the coming days, with predictions that it will get a green light by a small margin.

After announcing a takeover of the UK’s third largest oil and gas company, Shell quickly encountered opposition as some investors and analysts expressed doubt that the deal represented value for investors in current market conditions.

While BG slashed the value of it’s oil and gas assets to make a deal more attractive to a potential buyer, some high-profile investment bankers have called the deal “value-destructive” and stated that they will vote against the deal.

One of the main concerns is that the deal was negotiated much earlier, before the price of crude collapsed to 2003 lows. Since the landscape has changed, with no oil recovery on the horizon in the foreseeable future, many are looking for a way out and claim the deal no longer represents good value.

The vote will take place this week and requires a majority vote in favor from both parties, with the Shell vote taking place first. It is estimated that it will pass and go ahead by a small margin.

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