SHARE

Brazilian regulators granted unconditional approval on Friday to Royal Dutch Shell’s planned merger with BG Group.

Unconditional merger clearance from the Brazilian competition authority satisfies the first of the pre-condition for the combination.

Other pre-conditions include merger clearances in Australia, China and Europe, Shell added.

The deal won approval from the U.S. Federal Trade Commission in June.

“The addition of BG’s competitive deep water Brazil position to Shell’s global portfolio is one of the main strategic drivers for the combination. Securing CADE approval at this early stage is a significant deal milestone and reflects not only Shell’s thorough preparation but also the professionalism and efficiency of the Brazilian authorities,” Shell CEO Ben van Beurden said.

Van Beurden also re-confirmed that the filing process is underway in the remaining pre-conditional and other jurisdictions.

The company added that the  combination remains on track to be complete in early 2016.

Shell agreed in April to acquire UK-based BG Group for about $70 billion in cash and shares.

The deal is expected to grow Shell’s proved oil and gas reserves by 25 percent and increase its production by 20 percent while saving the company $2.5 billion per year.