Australian watchdog delays decision on Shell/BG deal

Royal Dutch’s Shell’s $47bn cash and share takeover of BG Group is set to face further delays after Australia’s competition watchdog put back its decision on the matter by another week to 19 November.

The Australian Competition and Consumer Admission said the decision had been delayed “to allow additional time to consider the proposed acquisition”.

In September, the ACCC highlighted concerns that the takeover might hurt gas supply competition in eastern Australia if Shell’s Arrow Energy sold its gas into BG Queensland’s Curtis liquefied natural gas plant for export.

Shell has a 50% stake in Arrow Energy Arrow Energy, while BG holds a majority stake in the Queensland Curtis Liquefied Natural Gas project.

In September, ACCC chairman Rod Sims had said: "The ACCC is concerned that, by aligning Shell's interest in Arrow Energy with BG's LNG facilities in Queensland, the proposed acquisition may change Shell's incentives such that it will prioritise supply to BG's LNG facilities over competing gas users."

The takeover has already received clearance from EU, US and Brazilian anti-trust authorities but still needs approval from China and Australia.