LONDON (AFP) – Anglo-Dutch oil giant Royal Dutch Shell has moved closer to owning all of Shell Canada.
In a statement to the London Stock Exchange, Royal Dutch Shell said the board of Shell Canada had recommended that minority shareholders accept its improved offer of 8.7 billion Canadian dollars (5.7 billion euros, 7.4 billion US dollars) for the 22 percent stake it does not own.
“Royal Dutch Shell today announced that it has reached agreement with and obtained the unanimous recommendation of the Special Committee and Board of Directors of Shell Canada Limited on a revised offer to acquire all of the outstanding common shares of Shell Canada,” a statement said Tuesday.
Royal Dutch Shell said it intended to proceed with the offer by way of a takeover bid by Shell Investments Limited, a wholly owned subsidiary of the group.
The bid is worth the equivalent of 45 Canadian dollars per share, compared with an initial offer of 40 Canadian dollars.
Three months ago, Royal Dutch Shell launched a cash offer worth a total of 7.7 billion Canadian dollars for the outstanding 22-percent share of Shell Canada.
Royal Dutch Shell has said it has moved to secure all of Shell Canada following the latter’s success in securing a “significant position” in Canada’s oil sands sector.
Oil sands are deposits of bitumen, a heavy black viscous oil, that must be converted into an upgraded crude oil before it can be used by refineries to produce motor fuel.
Shell Canada also produces natural gas, oil and refined petroleum products, and is Canada’s biggest producer of sulphur.