Monday 15th November 2021
Oil company pushes conversion
Shell leaves the Netherlands for tax reasons
Oil multinational Shell is working on restructuring its corporate structure. To do this, the group closes its headquarters in the Netherlands and moves to Great Britain. The name will also fall victim to the realignment.
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 shareholder Third Point.
The group announced 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 But the name of the group is also set to change: The “Royal Dutch” is no longer applicable, and the oil multinational will in future only operate under the name of “Shell”.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 government of the Netherlands spoke of an “unpleasant surprise”. You deeply regret this decision, tweeted Economy Minister Stef Block. The Hague is already in talks about the consequences for jobs, investments and sustainability. All of this is “immensely important”. The government in London welcomed the plans. Shell shares rose on the London stock exchange that morning.
Shell, like other large oil companies, is under increasing pressure from governments and investors to reduce its emissions. The company has already shed its fossil fuel business while increasing its share of renewable energies. Shell said it wanted to become climate neutral by 2050, but is under pressure to do more faster. The investor Third Point also wants to push through a split of the group. Shell’s management has already rejected such requests.