Royal Dutch Shell to Buy Tejas Gas

Royal Dutch Shell Group’s U.S. arm agreed to buy Tejas Gas Corp. for $2.35 billion in cash and debt, a move that would give it pipelines it needs to transport its burgeoning supply of natural gas from the Gulf of Mexico. Shell Oil Co., the U.S. unit, will pay $61.50 a share in cash, or $1.45 billion. That’s 23% more than Tejas’ closing price of $50. Shell will assume about $900 million in debt and preferred stock. Tejas has 10,500 miles of natural gas pipelines, including extensive networks in Texas and Louisiana that Shell said it wants to link with its gulf pipelines. Cash-rich Shell was looking for an acquisition, and a U.S. company in the natural gas industry is a good bet, analysts said.