PetroChina, Shell win Arrow with sweet offer

BEIJING - Australian coal seam gas producer Arrow Energy Ltd on Monday accepted the sweetened A$3.5 billion ($3.2 billion) takeover offer from energy giants PetroChina Co and Royal Dutch Shell Plc.

PetroChina and Shell will acquire all Arrow shares at a consideration price of A$4.70 per share in cash, the companies said in a statement. That marks a 35 percent premium to Arrow's last trade ahead of March 8, when the two companies offered A$4.45 per share for the assets.

Once the deal is completed, CS CSG (Australia) Pty Ltd, a 50-50 joint venture company owned by PetroChina and Shell, will own Arrow's Queensland coal seam gas (CSG) assets and power business in Australia. The joint venture will also control Shell's Queensland CSG assets and its site for a proposed liquefied natural gas (LNG) plant on Curtis Island at Gladstone, said the statement.