Royal Dutch Shell officials are mulling over plans to acquire BG Group PLC, a multinational gas and oil company based in the United Kingdom, in what could be one of the year's largest petroleum buyout deals, the Wall Street Journal reports.
The British company, founded in 1997 after a demerger with Centrica, has a market capitalization of $46 billion.
The possible acquisition of BG Group PLC by Royal Dutch Shell is one of many initiatives the company is making to cut expenses and boost profits, especially with the decline of oil process. Earlier this year the company announced plans for a three-year spending cut plan, which would lower commodity prices and place less emphasis on investments for shale.
Despite profits from a BG Group PLC acquisition and cuts to expenses, however, the pockets of Royal Dutch Shell investors may soon take a hit, as the price of gasoline is expected to continue its historic low throughout the summer.
"Gasoline consumption this summer is expected to be up 2 percent from last year to the highest level in five years," United States Energy Department official Adam Sieminski said, according to the New York Times.
He added that "higher employment and lower pump prices encourage more driving."
Royal Dutch Shell has also recently announced an upgrade of its chemical plant in Singapore.
