China has approved Royal dutch Shell and PetroChina's A$3.45 billion ($3.05 billion) bid for Australian coal-seam gas firm Arrow Energy Ltd, clearing the deal's last major regulatory hurdle. Arrow said on Wednesday the National Development and Reform Commission of China had approved the recommended offer and waived a requirement to obtain clearance from the State Administration of Foreign Exchange of China. Arrow shareholders meet on Wednesday to vote on the deal. The Shell-PetroChina joint venture will integrate Arrow's Australian assets with Shell's existing CSG assets and Shell's site for a planned Liquefied Natural Gas (LNG) plant on Curtis Island, Queensland, the companies said previously.
Shell and PetroChina will each own 50 percent of the gas produced by the LNG plant and the Anglo-Dutch oil major said it was likely to sell its gas to China. Shell and PetroChina are offering A$4.70 a share for most of Arrow's domestic coal seam gas assets. Arrow shareholders are also set to receive one share in a new Australian-listed company, Dart Energy, for each share in Arrow. Arrow shares, which have risen more than 20 percent so far this calendar year, closed on Tuesday at A$4.97 per share.