Shell Reorganizes its Share Structure Great Britain Becomes New Headquarters

With this move, the group is responding to pressure from the Third Point hedge fund. The Netherlands speak of an “unpleasant surprise”.

London – The British-Dutch oil company Royal Dutch Shell wants to give up its complex share structure and relocate its headquarters to Great Britain for tax reasons. The oil giant wants to keep its investors on board and also defuse a conflict with the activist shareholder Third Point.

The group announced on Monday that a simple share structure would make it easier for Shell to buy back its own shares. The shareholders are to vote on this on December 10th. But the name of the group is also set to change: The “Royal Dutch” is no longer applicable, the oil multi will in future only operate under the name of “Shell”. Shell also wants to relocate its tax headquarters from the Netherlands to Great Britain.

The move should have no consequences for the roughly 8,500 Shell employees in the Netherlands. The caretaker government in The Hague nevertheless spoke of an “unpleasant surprise“. “We are in discussion with the Shell management about the consequences of the plan for jobs, important investments and sustainability,” said Minister of Economic Affairs Stef Blok on the Dutch radio.

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Shell Reorganizes its Share Structure Great Britain Becomes New Headquarters - /10

Summary

With this move, the group is responding to pressure from the Third Point hedge fund. The Netherlands speak of an "unpleasant surprise".

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