Royal Dutch Shell Group .com Rotating Header Image

Shell’s key shareholder advisory group gives support for BG Group bid as oil giant predicts oil price will double

Screen Shot 2016-01-11 at 15.07.09


Shell’s mega bid for rival BG Group has received crucial backing in the US as the oil giant’s boss predicts the price of oil could double.

Glass Lewis, which gives guidance to US investors, has said it supports the £36billion offer that Royal Dutch Shell made in April last year.

Shell chief executive Ben van Beurden has shunned suggestions the deal is unwise due to sinking oil prices, currently around $33 per barrel, and has predicted prices will double.

He said: ‘The oil prices we are seeing today are not sustainable and are going to settle at higher levels over the next few decades than the low $60s that we require to make this deal a good deal.’

But Shell’s own finance boss, Simon Henry, said just days before that the price of oil could fall to $20 a barrel within weeks.

Prices have crashed 40 per cent since Shell first made its offer nine months ago, which has lead some investors, including Standard Life, to oppose the deal.

In giving its backing, Glass Lewis acknowledged price concerns but said it too expected prices to rise. It said in a statement: ‘We see a reasonable basis to maintain a belief that over the long term oil prices will recover.’
It added that Shell and BG together would be sufficiently diversified to be insulated from oil market downturns and the new company could see ‘significantly improved financial results’.

Glass Lewis, which represents investors holding nearly a quarter of Shell’s shares, is the latest to back Shell’s bid, after fellow investor advisory board, the Institutional Shareholder Services, gave its support last week.

Shareholders have until January 28 to vote on the takeover which, if approved, could be completed by February.

SOURCE and its sister non-profit websites,,,,,, and are owned by John Donovan. There is also a Wikipedia feature.

Comments are closed.

%d bloggers like this: