Shell Wins Investor Approval to Buy BG, Sealing Biggest Deal

Royal Dutch Shell Plc won shareholder approval to buy BG Group Plc, sealing its biggest acquisition amid the worst oil-industry slump since the global financial crisis.

More than 83 percent of Shell shareholders voted in favor of the transaction, the company said in a statement. Most votes were cast by proxy while other investors met in The Hague on Wednesday.

The approval vindicates Shell’s belief that it can better ride out the market rout by combining with U.K. oil and gas producer BG. Crude’s tumble since the deal was announced in April prompted some shareholders to question whether it’s paying too much, yet Chief Executive Officer Ben Van Beurden has said the acquisition will boost cash flow and enhance Shell’s ability to pay dividends, while BG’s growing production will help bolster its declining output.

Cheap Oil Bails Out Free-Spending U.K. Consumers

The new year was supposed to be a celebratory moment for the U.K. After growing 2.9 percent in 2014, the fastest pace among G7 economies, and 2.2 percent last year, 2016 was to see that recovery become established, particularly for workers.

Instead, the consumer engine that's powering the economy is running on the fumes of low oil prices.

Following the Great Recession, the U.K. consumer has helped pull the country from its slump. Between 2009 and 2014 household consumption contributed 4.3 percentage points to GDP growth, far more than consumers in countries such as Germany, where growth was balanced between trade, investment and household spending.