Australian regulator approves Shell's takeover of BG Group

Australia’s competition watchdog has approved the proposed merger of Royal Dutch Shell and BG Group.

The Australian Competition and Consumer Commission (ACCC) rubber stamped Shell’s $47bn cash and share takeover offer of BG Group overnight.

Shell chief executive Ben van Beurden said getting ACCC approval is a major step forward for the deal.

“The addition of BG’s integrated gas assets in Australia to Shell’s global portfolio is one of the main strategic drivers behind the recommended combination.”

“The Shell BG combination is a sign of Shell’s confidence in the Australian economy.”

The takeover has already received clearance from EU, US and Brazilian anti-trust authorities.

However, there are still two more hurdles for the companies to cross, with pre-conditional clearances still needed from Australia’s Foreign Investment Review Board and China’s Ministry of Commerce.

A decision from China is expected in early 2016, and the proposed transaction will also require support from both companies’ shareholders.