Royal Dutch Shell said its acquisition of BG Group has been approved by China’s Ministry of Commerce, Reuters reported. The acquisition, now pending approval by shareholders of a merger prospectus, would be the sector’s largest in a decade. Soon after announcing the green light from the commerce ministry, Shell issued a statement saying it expected to cut about 2,800 roles globally from the combined group. Reuters had previously reported that the Chinese Ministry of Commerce had pressed Shell to sweeten long-term liquid natural gas supply contracts, as the country faces a substantial oversupply over the next five years.
China Economic Review