Royal Dutch Shell cleared the final regulatory hurdle for its takeover of BG Group after receiving the green light from China on Monday, leaving the deal on track for completion by early 2016 following shareholder votes.

The combination will transform Shell into the world’s top liquefied natural gas (LNG) trader and a major offshore oil producer focused on Brazil’s rapidly-developing sub-salt oil basin that would rival Exxon Mobil’s position as the world’s biggest international oil company.

The acquisition, worth about $70 billion when it was announced and the biggest in the sector in a decade, had already received mandatory and unconditional approvals from Australia, Brazil and the European Union.

Shell shares were little changes by 08.15 GMT, while BG shares traded nearly 2 per cent higher.

Heralding a “more resilient and competitive” business, the Anglo-Dutch company slashed the combined group’s planned investment programme, highlighted cost savings of $3.5 billion and announced plans for $30 billion in asset disposals to pay for the acquisition while maintaining the cherished dividend.

With the regulatory approvals out of the way, Shell and BG turn their focus to shareholders and will publish within weeks a prospectus containing information on the deal and the change in the share structure and also announce dates for general meetings where the transaction will be put to vote.

“We will now seek approval from both sets of shareholders as we move towards deal completion in early 2016,” Shell CEO Ben van Beurden said, according to the company statement.

The integration of the two companies has been planned by a joint committee in recent months but could encounter some difficulties as BG’s small and relatively nimble operations are merged with Shell’s much larger structure.

The deal could also result in job cuts where BG’s 5,000 jobs overlap with Shell’s nearly 100,000-strong work force.

Reuters