On Wednesday the Royal Dutch Shell announced a mega takeover of British rival BG Group worth £47 billion. The approved deal is worth the equivalent of $70 billion or 64 billion euros.

“The boards of Shell and BG are pleased to announce that they have reached agreement on the terms of a recommended cash and share offer to be made by Shell for the entire issued and to be issued share capital of BG,” said a statement issued by the Anglo-Dutch group. 

“The result will be a more competitive, stronger company for both sets of shareholders in today’s volatile oil price world,” Shell chairman Jorma Ollila said in the release.

BG chief executive Helge Lund said the deal “delivers attractive returns to shareholders and has strong strategic logic”.

“The deal between Royal Dutch Shell and BG Group will prompt sector consolidation,” noted Marc Kimsey, senior trader at Accendo Markets.