Royal Dutch Shell Group .com Rotating Header Image

The merger no longer makes economic sense?

Screen Shot 2015-12-11 at 22.52.23

27 Dec 2015: Focus: Page 5: THE YEAR INFLATION DIED AND CHINA’S BUBBLE BURST

Screen Shot 2015-12-28 at 09.10.45Screen Shot 2015-12-23 at 09.03.45While oil prices teetered on the brink of a new fall, Royal Dutch Shell announced in April that it wanted to buy BG Group.

As the year wore on, some investors became restive.

At the time the deal was outlined, the financial logic of the takeover was underpinned by an assumption that oil prices would be about $67 a barrel.

They are now well below $40.

At that level, say some shareholders, the merger no longer makes economic sense.

Both Shell and BG are sticking to their guns: they insist the collapse in oil prices will not derail their plans.

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Comments are closed.