By GEOFF HO: Sun, Jan 24, 2016
Since the Anglo-Dutch oil giant unveiled its recommended takeover offer for BG last April, the price of crude oil has continued its descent and is now 41 per cent lower than when the deal was announced.
On Friday the price of Brent crude oil closed at $31.18 (£21.86).
The collapse in the price of oil has led a number of Shell’s key investors, such as Standard Life Investments, to question whether or not it should proceed.
Despite their concerns, a number of them also own shares in BG and are believed to be prepared to approve the deal, reasoning that the two firms would be stronger together.
Shell investors will vote on Wednesday, while BG shareholders will follow suit the day after.
If both sets of shareholders approve the transaction, it will complete the deal on February 15.
The price of oil has tumbled from $114.80 (£80.47) per barrel in June 2014 and earlier this month, it fell below $30 per barrel for the first time in more than 12 years.
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