In the first major energy industry merger in more than a decade, Royal Dutch Shell is to buy smaller rival BG Group for more than $70 billion. Anglo Dutch Shell will pay a mix of cash and shares for its purchase, that values each BG share at just over $20. It’s one of the biggest oil and gas deals in history. CCTV’s Richard Bestic filed this report from London.

One of the biggest oil and gas deals in history is happening

In the first major energy industry merger in more than a decade, Royal Dutch Shell is to buy smaller rival BG Group for more than $70 billion. Anglo Dutch Shell will pay a mix of cash and shares for its purchase, that values each BG share at just over $20. It's one of the biggest oil and gas deals in history.CCTV's Richard Bestic filed this report from London.

Highlights:

• Shell said the deal will boost its oil and gas reserves by 25 percent and at the same time enhance a complex infrastructure of tankers, terminals and pipelines.
• The Shell-BG deal could be the trigger for a fresh round of merger mania to rival that of the late 1990’s.