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Shell completes Repsol deal

TIP UPDATE: Anglo-Dutch oil giant Shell has completed the acquisition of Repsol’s liquefied natural gas portfolio outside of North America.
January 6, 2014

Royal Dutch Shell (RDSB) confirmed that it has completed the acquisition of Repsol’s liquefied natural gas (LNG) portfolio outside of North America, including the Spanish oil & gas company's liquefaction facilities in Peru and Trinidad and Tobago, along with an LNG import terminal in Spain.

IC TIP: Buy at 2273p

The purchase price of $4.1bn (£2.5bn) has been amended to include the exercise of pre-emption rights of the BBE power plant in Spain, as well as other adjustments such as the financial performance of the portfolio and working capital movements. As part of the transaction, Shell will also assume $1.6bn of balance sheet liabilities relating to existing leases for LNG ship charters, which will substantially increase the shipping capacity available to Shell's LNG marketing business.