Shell forced to increase bid for Cove Energy
Royal Dutch Shell has agreed to buy Mozambique-focused explorer Cove Energy for an increased bid of $1.8 billion.
The company has upped its initial $1.6 billion offer in February to $1.8 billion to match a rival bid by Thai state-controlled oil and gas group PTT PTTE.BK.
The cash bid means that the Anglo-Dutch firm will be able to take advantage of the gas discoveries in the East Africa region, which is predicted to become a major supplier of liquid natural gas (LNG) to Asia.
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The offer of 202p per share is dependent on securing consent from Mozambique's Minister of Mineral Resources.
"Shell represents an excellent partner for all the stakeholders in the Rovuma LNG project given its extensive project development, operating and marketing experience in the entire LNG value chain," Cove's Executive Chairman Michael Blaha said in a statement.
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