New Zealand allows Shell and Apache to buy Fletcher
The New Zealand Commerce Commission has cleared the acquisition of Fletcher Challenge Energy Ltd. by units of Royal Dutch/Shell Group and Houston-based Apache Corp. Last month, the regulating agency rejected the $4.6 billion (NZ) joint bid because of competition concerns.
The New Zealand Commerce Commission has approved the sale of Fletcher Challenge Energy Ltd. to units of Royal Dutch/Shell Group and Houston-based Apache Corp.
Last month, the regulatory agency rejected the companies' $4.6 billion (NZ) joint bid because of competition concerns (OGJ Online, Oct. 12, 2000).
To win government approval, Shell agreed to divest some of Fletcher's large New Zealand gas assets. Shell will get the Fletcher Challenge Energy subsidiaries in New Zealand and Brunei.
Apache will acquire Fletcher Challenge Energy's holdings in Argentina and western Canada for $600 million. Proved reserves are 713 bcf of gas, roughly 12% of Apache's current proven reserve base(OGJ Online, Oct. 10, 2000).
The deal is still subject to other regulatory, court, and shareholder approvals, but is expected to close by the end of the first quarter, with an effective date of July 1, 2000.