Bidness Etc takes a look at challenge facing Shell as it incorporates BG Group in its fold
By: MICHEAL KAUFMAN: Published: Apr 27, 2015 at 1:45 pm EST
Royal Dutch Shell plc (ADR) (NYSE: RDS.A) $70 billion acquisition of BG Group plc (ADR) (OTCMKTS: BRGYY) is a first of such magnitude for the Hague-based oil company. The energy company did not become part of the wave of merger activity that swept the energy industry, post-1998, after oil prices crashed.
Some of the big merger deals included the Total SA (NYSE:TOT) acquisition of Elf, Chevron Corporation (NYSE:CVX) merger with Texaco, BP plc (NYSE: BP) purchase of Amoco and Exxon’s acquisition of Mobil from Mobil Corporation (NYSE:XOM). Royal Dutch Shell’s competitors have had the experience of mega mergers, and they know from experience what the company goes through during and after the integration process.