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Shell CEO says only ‘something cataclysmic’ could stop BG deal

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Sep 9 2015, 14:43 ET | By: Carl Surran, SA News Editor

Royal Dutch Shell (RDS.A, RDS.B) CEO Ben van Beurden has told investors privately that only “something cataclysmic” – i.e., “if people stopped using energy” – could derail the company’s planned takeover of BG Group (OTCPK:BRGXF, OTCQX:BRGYY), WSJ reports.

The episode is among the latest attempts by top Shell execs to sell investors worried that the deal may fall through; BG shares trade at a discount to the Shell cash and share offer, concerns that Australian and Chinese regulators could set high hurdles and, more broadly, that the persistently low oil prices could yet lead Shell to rethink the merger are dampening sentiment.

The gap between the price of BG shares and the Shell cash and shares offer has widened over the past two weeks to an average of 16% from ~12% following the April 8 deal announcement.

Most analysts have praised the logic of the deal and continue to believe it will be completed.

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