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Shell’s BG takeover set to go ahead

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World Pipelines,

Royal Dutch Shell has issued preliminary results, ahead of a shareholder vote this week on its purchase of BG Group.

Shell has reported a sharp drop in profits: for 4Q15 it expects profits of US$1.6 billion -1.9 billion, less than half the US$4.2 billion it made a year ago.

The oil firm has issued the preliminary results to enable investors to have up-to-date information on its performance ahead of the vote on 27 January.

Chief Executive Ben van Beurden said he was "pleased" with the results. "The completion of the BG transaction, which we are expecting in a matter of weeks, will mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns," he added.

In April, Shell announced it had agreed to buy oil and gas exploration firm BG Group in a £47 billion deal.

Major investors are expected to back Shell’s bid for rival BG Group, despite reservations that the plunging oil price has made the deal less attractive than when first unveiled last year.

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

Edited from various sources by Elizabeth Corner

Sources: The GuardianScotsmanStreetWise JournalBBC News

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