BG Group confirms talks on possible purchase by Shell
"There can be no certainty that any offer will ultimately be made for BG."
LONDON (AFP) - Britain-based gas producer BG Group has confirmed it is in "advanced discussions" on its possible purchase by energy giant Shell in what would be a major transaction in a sector hit by low oil prices.
"The board of BG Group plc notes the recent speculation and confirms that it is in advanced discussions with Royal Dutch Shell plc regarding a possible offer by Shell for BG," the firm, which specialises in liquefied natural gas, said in a statement late Tuesday.
"There can be no certainty that any offer will ultimately be made for BG."
An acquisition of BG Group, which has a market capitalisation of 31 billion ($46 billion, 42.5 billion euros), would be a major deal in a market where oil prices have plunged since last June.
BG Group, Britain s third largest energy company, has slashed spending and said in February it would write down the value of its oil and gas assets by almost $9 billion due to the oil price slump.
