Brazil gave the green light to oil major Royal Dutch Shell to buy smaller rival BG, advancing the $70 billion merger — the largest of the past decade — closer to completion in early 2016.
The proposed acquisition had previously obtained a green light from United States Federal Trade Commission (FTC) and now only needs pre-conditional approvals from the European Union, Australia and China for the merger to go ahead.
Shell and BG produced a combined 212,252 barrels of oil equivalent per day in Brazil in May, or 7.1 percent of the country’s total. Analysts expect this figure to double to nearly 500,000 boepd by 2020.
Total Cost of the deal would be around $70 billion.
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