UK's BG Group to buy Queensland Gas for $3.4 bln

SYDNEY Oct 28 (Reuters) - British gas producer BG Group plc (BG.L) agreed to buy Australia's Queensland Gas Company Ltd QGC.AX (QGC) in a deal valuing QGC at A$5.6 billion ($3.4 billion), the companies said in a joint statement on Tuesday.

BG will pay A$5.75 per share, an 80 percent premium to QGC's last traded price. It will buy AGL Energy Ltd's (AGK.AX) stake of 204.6 million shares in QGC, with AGL set to receive A$1.18 billion.

QGC shares were placed on trading last week pending an announcement. ($1=A$1.66) (Reporting by Denny Thomas)