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BG 'may face an Oz sell-off order'
15.08.08
Gas giant BG Group may be forced by Australia's competition watchdog to sell coal seam assets Down Under.
The company, in the midst of a A$13.61billion (£6.34billion) hostile bid for local gas producer and power retailer Origin Energy, has been buying Australian gas assets to take advantage of booming Asian markets.
Earlier this year it picked up a 20% interest in Queensland Gas's coal seam gas acreage after signing a deal with it to develop a liquefied natural gas (LNG) plant in Queensland.
But Credit Suisse says the Australian Competition and Consumer Commission may have concerns about the takeover. It has delayed a decision and requested more information.
"While we believe that potential ACCC issues can be resolved, they may come at a price to BG and possibly to QGC, if BG has to exit its 20% stake in QGC's tenements," Credit Suisse has told clients.
