China approves Shell's BG Group takeover

The Ministry of Commerce green light marks the last regulatory hurdle for the deal and clearing the way for a final shareholder vote in the coming weeks

As the final shareholder vote nears, attention will return to the deal’s lofty valuation as they re-visit the agreement much deeper into the oil downturn than when the takeover was announced in April. Brent crude has fallen to around $38 a barrel this week, down about a third from when the deal was announced in April. And there is little hope for price relief in the coming months as producers continue to pump as much oil as possible into already oversupplied markets. This has shaken the outlook for the deal’s valuation and strategic justification. On the positive side for Shell’s shareholders, the takeover is now worth nowhere near the initial price tag of $70bn. As Shell management has been