Royal Dutch Shell has sealed its latest acquisition deal. Shell finalized its merger with BG Group, taking over the company in a deal worth $53 billion, Reuters reports. This makes Shell the world's leading producer of liquefied natural gas, and the world's second-largest public oil and gas company, behind only Exxon Mobil Corp.
This also makes Shell an even bigger contender for foreign oil companies, as the company will have access to oil off the coasts of Brazil, Fox Business reports.
The acquisition was paid for mainly in shares, as opposed to cash. It will make BG a subsidiary of Shell, owned completely by the company and headed by Huibert Vigeveno.
"This is an important moment for Shell. It significantly boosts our reserves and production and will bring a large injection to our cash flow, said CEO Ben van Beurden, according to USA Today.
The deal becomes a reality 10 months after it was first announced, and amidst an increasing crisis in the oil industry. Crude oil has been at its lowest prices in years, resulting in numerous job cuts and business mergers.
After news about the merger first came out, Shell announced that 2,800 jobs would be cut. This came after the company announced 7,500 job cuts globally due to the oil crisis.
