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BG 'may face an Oz sell-off order'
Evening Standard 15 Aug 2008
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.
