Shell Agrees to Buy BG Group for Close to $70 bn

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

In a statement published Wednesday, 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.

The price is a 50 percent premium to BG’s closing share price on Tuesday, Shell said adding that the combination will result in BG shareholders owning approximately 19% of the combined entity.

Shell expects the combination to accelerate its growth strategy in global LNG and deep water.

The combination will add some 25% to Shell’s proved oil and gas reserves and 20% to production, each on a 2014 basis, and provide Shell with enhanced positions in competitive new oil and gas projects, particularly in Australia LNG and Brazil deep water.

 If the merger goes through, it will be one of the biggest deals for Shell in almost two decades.