Arrow Energy approves international business negotiations
Shareholders vote in favour of $3bn takeover by Royal Dutch Shell and PetroChina
14 July 2010
Arrow Energy shareholders have approved of a takeover by two
rival firms following extensive international business
negotiations.
The company's shareholders voted in favour of the $3.05 billion
(£2 billion) sale to Royal Dutch Shell and PetroChina.
Australian-based Arrow will be disbanded and merged into the
newly formed Dart Energy, with the majority of its assets,
including its coal-seam division, acquired by a consortium of Shell
and PetroChina.
Shaun Scott, Arrow's chief executive officer, claimed the
"environment has changed" following new legislation in Australia
which taxes resource projects.
He told businessweek.com: "What has been highlighted in the last
few months is that there's a lot more risk. At the end of the day
the reality is that big projects are better off in the hands of big
companies like Shell and PetroChina."
Shareholder approval was one of the few remaining regulatory
obstacles blocking the deal, which should be finalised in the
Federal Court of Australia this week.