BG Group is clearly on the hunt to deploy more capital. Having failed to buy Origin Energy, an Australian group also with extensive coal bed methane assets, it is now bidding for Queensland Gas Company, a deal that would give them access to Australia’s coal-bed methane gas reserves.
The deal is pretty surprising really given the turmoil in global equity markets and the volatility in commodity prices, including oil. Clearly, it looks a lot better than the overpriced bid for Origen but, even so, it seems a bit of a rash move at a time like this!
