The Washington Post

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Shell’s $70 billion takeover could herald wave of mergers: The Washington Post
The article by Danica Kirka and Mike Corder titled "Shell’s $70 billion takeover could herald wave of mergers" published by Washington Post on April 8, 2015 focuses on the new developments in the energy sector. In this article, Shell Oil and Gas Company has come to an agreement to purchase British rival BG Group for 47 billion pounds which is equivalent to $69.7 billion in a deal that may show signs of wave of big merging as the energy industry is trying to adapt to low prices (Kirka & Corder).
Disclosure of financial Statements
The information reported in this article is very crucial to the stakeholders of these two companies especially those of Shell Petroleum. The disclosure of this in financial statements will be done in order to provide any information about the financial position of Shell and that of British rival group BG (Kirka & Corder). That information should be containing details about the company’s assets, liabilities, equity, income and expenses and cash flows as well as the ownerships after the deal. Information about contributions and distribution to owners will also be disclosed. The information will be disclosed to ensure that the general public is aware of the purchase of the BG Company and the main contents of that information will be that shell aims to expand their company and improve on the kind of services they used to offer while improving accessibility and availability (Kirka & Corder). The information disclosed should not be aimed at communicating that the BG Company has gone bankrupt but rather highlight its financial standing.
Opinion of the company’s situation
The buyout boosts the Shell’s presence in a fast growing liquefied natural gas market. This puts the company at a better position in controlling the energy market in terms of reserves in a period where the price volatility is pushing companies to the edge. On the other hand, it could be a sign of its strategic position in the market and hence its acquisition would strengthen Shell’s presence and competitiveness in the market in both near and far oil reserves.
Situation Concern
This situation might be of concern because if BG Company is selling part of whole of its assets or the whole company as a whole, one question one can ask himself is what now happens to their employees? With an imagination that such a company could have more than 20000 workers, where are these 20000 people supposed to go after the company closes down? Could they be absorbed by shell now that BG Company is being bought by shell? In as much as the deal is set to boost growth in the energy industry, the decision of selling BG Company might cause intimidation of small other energy, oil and gas companies’ which might end up being purchased by other giants of the energy, oil and gas industry.
Ethical Responsibilities of the Company to the Public
Ethical responsibilities of a company can be defined as res...