Royal Dutch Shell has reportedly agreed to a GBP 47 billion deal ($70 billion) for the buying of the BG Group firm, specialized in the field of oil and gas exploration. 

Video: Saxo TV

The deal marks one of the biggest mergers in years and as a result BG’s shares have skyrocketed through the roof with a whooping 40% increase. Given the fact that oil prices have demonstrated a tendency of remaining at a lower level, there is a high chance that more deals like this are to come as the industry contracts and consolidates.

Peter Garny, Saxo Bank’s Chief of Equity Strategy, further elaborates and examines the effects of the deal on the energy stock landscape and pinpoints some of the potential signs that investors are to look out for if they are to identify the next target of the oil giants.