Shell Gets Green Light from EU for Enterprise Acquisition
Shell has been granted approval by the European Union to acquire Enterprise Oil for US $5 billion. The EU has determined that the take-over will not create anti-competitive consequences. The possibility of a competition problem in regard to pipelining and processing issues was investigated and it was determined that the two companies were compatible in those areas.
The approval is one further step in bringing the acquisition to a conclusion, which will significantly increase Shell's holdings in the UK and Norwegian sectors of the North Sea and in offshore Brazil. In acquiring Enterprise, Shell increases its UK North Sea output by 30% and its Norwegian production by 50%. It gains significant holdings in numerous other areas around the world, including Italy, Ireland, the US Gulf of Mexico, and in Brazil's deepwater sector.