Regulator approves joint bid for Arrow

SYDNEY: Australia's foreign investment regulator has approved Royal Dutch Shell and PetroChina's joint US$3.2 billion ($4.4 billion) takeover bid for Arrow Energy, the Australian coal seam gas producer said yesterday.

Arrow said the approval from the Foreign Investment Review Board means the company can now request regulatory approval from Chinese authorities. The Australian regulator gave its approval early last month to the takeover.

Under the deal, Arrow will spin off its assets outside Australia into a new company, Dart Energy, in which Arrow shareholders will get a stake.

Arrow, which supplies coal seam gas to eastern Australia and Asia, said it will hold a vote on the deal at a shareholder meeting in mid-July.

- AP