Shell in talks to buy Britain's BG Group: report

[LONDON] Energy giant Royal Dutch Shell is in talks to buy Britain-based gas producer BG Group, the Wall Street Journal reported on Tuesday, citing sources close to the matter.

An acquisition of BG Group, which has a market capitalisation of £31 billion (S$63 billion), would be a major deal in a market where oil prices have plunged since last June.

The Wall Street Journal said it would be a "rare megadeal in the energy patch" that would "solidify what was already shaping up to be a banner year for mergers and acquisitions".

BG Group, Britain's third largest energy company, has slashed spending and said in February it would write down the value of its oil and gas assets by almost US$9 billion due to the oil price slump.

AFP