Royal Dutch Shell PLC’s proposed deal for BG Group PLC will create an entity with retirement assets of nearly $100 billion.
Reading, England-based BG Group’s two defined benefit plans for U.K. employees — the BG Pension Scheme and the BG Supplementary Benefits Scheme — had total assets of $2 billion, according to its 2014 annual report.
BG Group’s defined contribution assets were an estimated $100 million, based on the National Association of Pension Funds’ 2013/2014 yearbook.
Royal Dutch Shell’s DB assets totaled $86.3 billion as of Dec. 31. According to the firm’s 2014 annual report, the most significant plans are in the Netherlands, U.K. and U.S.
The company, based in The Hague, Netherlands, closed its U.K. DB plan to new members in early 2012 and created a defined contribution plan for new employees. The size of that plan could not be learned by press time.
The company’s latest 5500 filing shows U.S. DC assets totaled $10.3 billion as of Dec. 31, 2013.
The asset allocation for BG Group’s DB assets as of Dec. 31 was 37.6% equities, 29.4% index-linked gilts, 15.2% absolute return, 10.2% corporate bonds, 7.3% real estate and 0.3% cash.
Shell’s DB asset allocation was 48% equities; 42% fixed income; 4% real estate and 6% cash and other.