On Wednesday morning, Royal Dutch Shell (RDS-A) announced that it has agreed to acquire oil and gas company BG Group. Here’s what the deal means for mutual fund investors.
Inside the Deal
Royal Dutch Shell announced that it will acquire UK-based BG Group for 47 billion pounds, or $69.78 billion.
This deal is expected to be one of the biggest deals in the industry for decades, and is expected to close in 2016.
The news sent shares of BG Group (LON: BG) soaring on Wednesday, while RDS-A shares declined 3.5%.
Energy M&A
This mega merger has led the way for what could be a trend in the oil and gas industry. As revenues and profits have been hit by low energy prices, companies are combining to better deal with the unfavorable pricing environment.
Mutual Funds to Watch
Investors interested in RDS-A may also consider the following mutual funds as an alternative to investing directly in the stock. The funds below currently hold the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| FKINX | Franklin Income | 0.79% |
| DODFX | Dodge & Cox International Stock | 0.26% |
| VGENX | Vanguard Energy | 0.24% |
The Bottom Line
The funds listed above offer investors a stake in RDS-A, while remaining diversified. Investors may also be interested in Chevron (CVX) and BP (BP).
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