Shareholders look set to approve Royal Dutch Shell's acquisition of BG this week, despite concerns Shell moved too soon and paid too much. Shell is clear about the > strategic rationale: Capitalize on the companies' strengths to create a global LNG marketing and deepwater giant accounting for nearly 20% of global supply, and with unrivalled flexibility in terms of supply points and market access (WGI Dec.23' 15). But the oil and gas price crash has left some investors unconvinced. Oil prices are at 12-year lows, LNG prices in Asia are about 40% lower than when the cash-and-share deal was announced last April, new LNG and other megaprojects have stalled, and deepwater costs remain stubbornly high (p4).
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