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Shell Executives Try to Seal Deal for BG

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Screen Shot 2015-12-23 at 09.03.45By SELINA WILLIAMS: Jan. 7, 2016 3:08 p.m. ET

The cash and shares deal, valued at around $51 billion, is important to both companies. If approved, the merger will give the Anglo-Dutch oil giant a dominant position in the growing liquefied natural-gas market as well as stakes in highly prized oil fields offshore Brazil. BG investors will receive a chunky premium for selling up if the deal goes through.

But the deal has been roiled by further declines in oil prices in recent weeks and turmoil in China’s stock market that has pulled down global equities. Investors are also still worried that Shell is paying too much for BG, which it proposed to buy when crude prices were about $55 a barrel in April—about 40% more than they are now.

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