Fiona Walsh: 16 Dec 2015
When Royal Dutch Shell launched its blockbuster £47 billion (€65 billion) bid for BG, oil was changing hands on energy markets at about $60 a barrel and the price was forecast to rise to $70.
Nine months later benchmark Brent crude has slid to a seven-year low below $40 a barrel. So the value of Shell’s shares and cash offer for BG has been cut from £47 billion in April to £35 billion. So do the economics of a deal that would have created a business valued at more than £200 billion still add up?