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BG Group: Shell just needs to make the math work

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Royal Dutch Shell/BG Group – $82 billion

In April, Royal Dutch Shell RYDAF -0.98% decided to take advantage of the drop in the values of fellow oil companies and buy BG Group.

It’s unclear how wise that decision was.

Oil prices have continued to drop.

Originally, Shell said the deal made sense even if oil prices dropped to $70 a barrel.

They recently dipped to $34. 

The deal gets Shell into the liquified gas market, as well as the offshore oil fields of Brazil.

The move has been blessed by regulators and is likely to get approved by shareholders.

Shell just needs to make the math work.

It recently said it would cut back its capital spending in 2016.

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