Royal Dutch Shell Plc got clearance from antitrust authorities in China for the takeover of BG Group Plc, removing the final regulatory hurdle for its biggest-ever deal.
The clearance from China’s Ministry of Commerce follows similar approvals from authorities in Brazil, the European Union and Australia. BG and Shell will now seek assent from their shareholders and plan to complete the transaction in early 2016. About 2,800 jobs, or 3 percent of the total workforce of the two companies, will be cut after the combination, Shell said in a separate statement.
Shell’s takeover of BG, valued at about $70 billion when it was announced in April, has come under scrutiny as crude prices have slumped below $40 a barrel from about $60 when the deal was announced. Oil’s drop in the past week has widened the discount of BG’s shares to Shell’s offer price, suggesting increased risk of the deal completing. Analysts including Iain Reid of Macquarie Securities Group and Brendan Warn of Bank of Montreal still expect the deal to go through.
Brazil Energy Insight 
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