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.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Anglo rejects BHP takeover bid as significantly undervalued
India rice prices at three-month low on shrinking demand
Gold prices set for weekly decline ahead of US inflation data
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply
Oil settles higher as weak US economic growth offset by supply concerns
India's Vedanta misses Q4 profit estimates on lower prices