A new era of oil mega-mergers?

Royal Dutch Shell Plc agreed to buy smaller rival BG Group BGG 0.41% for $70 billion in the first oil super-merger in more than a decade to close the gap with the world’s largest oil firm U.S. ExxonMobil Inc. XOM 1.08% .

 

In a joint statement, the two firms said Shell would pay a mix of cash and shares that would value each BG share at around 1,350 pence, more than 50% over its average price during the last three months.

 

Britain’s BG had a market capitalisation of $46 billion as of Tuesday’s close, while Shell was worth $202 billion. Exxon, the world’s largest oil company by market value, was worth $360 billion.