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Australia watchdog flags concerns on Shell takeover of BG
[MELBOURNE] Australia's competition watchdog flagged concerns on Thursday that Royal Dutch Shell's proposed US$70 billion takeover of BG Group may lessen gas supply competition in eastern Australia and delayed a final decision on the bid to November.
The Australian Competition and Consumer Commission said a large number of market participants had expressed concerns, given that the proposed takeover may lead Shell's Arrow Energy to sell its gas into BG's Queensland Curtis liquefied natural gas plant for export.
"If the proposed acquisition resulted in less supply of gas to the domestic market, therefore, this could substantially lessen competition to supply domestic gas users and lead to higher domestic prices and more restrictive contractual terms,"ACCC Chairman Rod Sims said in a statement.