Why did Shell’s acquisition of BG receive unconditional approval from China’s Ministry of Commerce?

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Royal Dutch Shell has announced that it will complete the acquisition of British Gas (BG) next year, having received unconditional approval from China’s Ministry of Commerce for this process. 　　Shell stated that the acquisition plan had previously been approved by regulatory authorities in Brazil, the European Union, the United States, and Australia, and acquiring British Gas would generate $3.5 billion in pre-tax synergies for the company. The last antitrust regulatory approval required for this acquisition plan is from China’s Ministry of Commerce. It is estimated that by 2017, including British Gas, Shell’s supply of natural gas to China will account for one-third of China’s total natural gas imports. 　　According to the BBC, the United States may lift the 40-year-old ban on oil exports. Allowing oil exports is a key component of the spending and tax measure deal that lawmakers are negotiating, with the U.S. Congress expected to pass the plan by the end of this year. This news may support a rebound in oil prices to some extent, but the fundamental conditions of the market remain weak; supply far exceeds demand, and the trend of low oil prices will continue into next year. 　　During the period of low global crude oil prices, which were at their lowest level in seven years, Shell remains confident about the future despite the current difficulties, and continues to pursue acquisitions at these low price levels. Shell’s acquisition of British Gas is one of the larger M&A deals that has been rare in the energy M&A market over the past decade, as well as the biggest acquisition since the merger of Royal Dutch Shell and British Shell in 2005. 　　The unconditional approval from China’s Ministry of Commerce, along with the approval of this final regulatory requirement, led to the creation of the world’s largest natural gas producer – one that is larger than ExxonMobil and could become the largest integrated oil producer in history. Zhao Guizhen, a gas analyst at Longzhong Petrochemical Network, believes that in the coming period, certain factors might benefit China’s natural gas imports, such as most-favored-nation treatment. This has become one of the reasons why some people speculate that China’s Ministry of Commerce will approve this merger without any conditions. As for the underlying causes and effects, we will have to wait and see.