Bank Watch

Bloomberg: BofA to receive large payout for Shell deal

Bank of America could be paid as much as $65 million for its work advising Royal Dutch Shell on the purchase it announced this week of BG Group, Bloomberg reports.
Bank of America could be paid as much as $65 million for its work advising Royal Dutch Shell on the purchase it announced this week of BG Group, Bloomberg reports. jkomer@charlotteobserver.com

Bank of America could be paid as much as $65 million for its work advising Royal Dutch Shell on the purchase it announced this week of BG Group, Bloomberg reports.

Under the deal, announced on Wednesday, Shell plans to buy rival energy company BG Group for $70 billion. It’s the largest takeover announced so far this year and the oil and gas industry’s biggest merger in at least a decade, according to Bloomberg.

Bank of America was the only adviser to Shell in the deal. Shell has also agreed to a $4.53 billion loan from the Charlotte-based bank to help fund the BG Group purchase.

Bank of America did not immediately provide comment.

BG Group is based in England.

Shell is based in the Netherlands. Its chairman is former Bank of America chairman Chad Holliday Jr.

Last year, the bank announced Holliday was stepping down as chairman as he accepted the Shell post. Holliday continues to serve on the bank’s board.

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