Reasons for the acquisition of BG by Shell

The Shell board considered the following factors to enter the deal:

 The deal provided an addition of 25% to their gas reserves and 20% to production as
well as offer them an enhanced position in competitive new oil and gas projects,
particularly in Australia LNG and Brazil deep water.
 By applying its capabilities to the BG assets, the combined group would have
a) two strategic growth businesses – deep water and integrated gas – that could
potentially each generate $15-$20 billion of cash flow from operations per
annum.
b) Upstream and downstream engines that could possibly generate a further
combined $15-$20 billion of cash flow from operations per annum in total.
c) Long-term positions which could potentially add around a further $10 billion of
cash from operations annually. 

Rightly said. The transaction is one of the largest in the energy industry’s history. It’s also the biggest
the Shell Group has completed since 1907, when Royal Dutch and Shell Transport and Trading
merged to become Royal Dutch Shell.

Group 11- Deal 5

Global deal: Royal Dutch Shell and BG Group

Royal Dutch Shell Plc and British energy giant BG Group plc became one combined group of
companies when the deal was completed on Feb 15, 2016. The transaction is one of the largest in
the energy industry’s history. It’s also the biggest the Shell Group has completed. It was completed
through a cash and stock deal for a value of 35 billion pounds

Indian deal: Ultratech Cement’s acquisition of Jaypee Cement

On June 29th, 2017, Aditya Birla Group’s UltraTech Cement Limited completed the acquisition of
Jaypee Cement Corporation as well as Jaiprakash Associates cement assets for Rs 16,189 crores. Six
cement factories across the country with a combined capacity of 22.4 million tons per annum would
be taken over by UltraTech, and debt of Rs.12000 crores would be moved from Jaiprakash Associates
Ltd. to UltraTech.