Shell, PetroChina improve bid for Arrow

Shell, PetroChina improve bid for ArrowThe joint bid of Royal Dutch Shell and PetroChina for taking over Arrow has been improved.

As against the earlier bid of $2.96 billion, it has now increased it to $3.14 billion. In Australian dollars, it is 3.44 billion.

The consortium had first bid during the first half of this month. It is now waiting for approvals from the shareholders of Arrow as well as the Australian authorities.

Talking about the deal, Chairman of Arrow, John Reynolds said that the transaction will help in making the value of the assets of Arrow's Queensland business more strong. And through a proper execution of their well-planned strategy, the management has been able to build an exciting opportunity for its shareholders.

The bidders have eyed these assets since they want to have a foothold in the coal seam gas of Australia.

Arrow's assets include the biggest methane gas holding in Australia. It has seen growing interest of China as well. The incident of four employees of Rio being accused of bribery charges in Shanghai has strained the relations between the two countries.

And so, the current deal holds value since it is about a foreign company coming and buying assets in Australia.