BG, which has been under increasing pressure following heavy falls in oil and gas prices, confirmed it was in discussions with its rival.

Reports suggest that Shell’s bid is worth about £46bn ($70bn), which represents a 50% premium to BG’s market value.

BG shares closed up 6.3% at £9.10 on Tuesday, valuing the company at £30.7bn, before news of the talks broke.

“The