Shell ‘in talks’ to buy BG Group

Energy giant Royal Dutch Shell is “in talks” to buy gas utility BG Group, the Wall Street Journal has reported, citing “people familiar with the matter”.

The mega-merger could produce a company with a combined market capitalisation of more than £200bn.

No-one from BG Group was immediately available to confirm or deny the WSJ’s report.

If the deal goes ahead, the recent collapse in oil prices will have played a large part in it.

BG Group, Britain’s third largest energy company, said in February that it would write down the value of its oil and gas assets by nearly £6bn ($9bn) due to the oil price slump.