Royal Dutch Shell’s deal to acquire the UK-based BG Group that is already at a risk of facing numerous obstacles,with a risk of a competitor outbidding Shell’s bid.
The Financial Times has reported the latest hurdle that might hinder the course of the deal. This one is considered to be the biggest of all hurdles, the entry of China’s Ministry of Commerce (MOFCOM) is to conduct a regulatory scrutiny of the deal. Moreover, rival authorities of Australia, Brussels and Brazil are also expected to scrutinize the reach and size of the combined company.
Experts at FT believe that China might approve the deal, but would also demand concessions like it did with the Glencore International.
A senior oil industry executive told FT that he would not be surprised if the Shell and BG are asked to give up one of their grade one LNG assets.
Full content: The Financial Times
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