PetroChina (NYSE:PTR) Royal Dutch Shell (NYSE:RDS-B) Acquire Arrow Energy

PetroChina and Royal Dutch Shell Acquire Arrow Energy

After increasing their offer by 6 percent, PetroChina (NYSE:PTR) and Royal Dutch Shell (NYSE:RDS-B) agreed to acquire Arrow Energy for $3.1 billion.

This is the first entry by a Chinese company into the natural gas trapped in the coal of Queensland, Australia. Arrow owns the coal-seam gas resources reserves in the region.

The price is considered a premium of 35 percent over the original pre-announcement close.

Australian regulators will have to approve the deal, but there's no indication that will be a problem. Shareholders will also have to vote to approve the deal, which was recommended by the board of the company to accept.