BG Group (London: BG) has acquired a 91% stake in Australian coal-seam gas producer Pure Energy Resources Ltd. (Australia: PES) for A$1.03 billion (US$673 million) in cash, winning a bidding war with Australia’s Arrow Energy Ltd.

The two companies coveted Pure’s gas assets to feed their liquid natural gas operations for export to Asia. BG paid A$8.25 per Pure share. The remaining shares will be acquired by compulsory acquisition.