Shell-BG Merger Gets Chinese Regulatory Approval

Royal Dutch Shell announced Monday that its merger with BG Group has received unconditional clearance from the Chinese Ministry of Commerce.

Following previously announced approvals in Brazil, the EU and Australia, MOFCOM clearance marks the final pre-conditional approval required for the combination.

Shell CEO Ben van Beurden, "This is a strategic deal that will make Shell a more profitable and resilient company in a world where oil and gas prices could remain lower for some time. We will now seek approval from both sets of shareholders as we move towards deal completion in early 2016."

Shell also announced that the company currently expects an overall potential reduction of approximately 2,800 roles globally across the combined group, or approximately 3 percent of the total combined group workforce. “These reductions are in addition to the previously announced plans to reduce Shell's headcount and contractor positions by 7,500 globally.”

In April, Royal Dutch Shell agreed to buy BG Group in a deal close to 47 billion pounds ($70 billion).

Shell said the payment would be combination of stock and cash. For every share held, BG shareholders would get 3.83 pounds in cash and 0.45 Shell B shares.