Royal Dutch Shell has been given clearance by EU regulators for its £47 billion deal to buy UK oil and gas exploration firm BG Group.

The European Commission said the transaction will not grant Shell market power in oil and gas exploration, LNG liquefaction or LNG wholesale supply.

The energy giant also won’t be able to prevent competitors from using its gas infrastructure in the North Sea, it added.

The Commission stated: “The Commission found that after the transaction the merged entity’s market share would remain limited in the exploration for oil and gas reserves, the liquefaction of LNG and the wholesale supply of LNG. Moreover, a number of strong competitors would remain active in these markets after the merger.

“The Commission concluded the takeover would not allow Shell to influence prices and that these markets would remain competitive after the transaction.”

Shell has also been given approval by the US and Brazil.

The company still requires further regulatory clearances from countries BG Group operates in, including Australia and China.