AFP, Released Monday, November 15, 2021 at 12:37 p.m.
Royal Dutch Shell, an Anglo-Dutch hydrocarbon company, on Monday announced plans to relocate its headquarters and tax residence from the Netherlands to the United Kingdom, which has been criticized by the Dutch government.
The group wants to simplify its structure and “align its tax residence with the country in which it is registered, the United Kingdom,” where it will relocate its governing bodies, a statement said.
The Dutch government on Monday expressed “unpleasant surprise” and “deep regret,” Economic Affairs Minister Steph Black said on Twitter.
For the first time in 130 years the Royal will be removed from the Dutch name.
“We are discussing with Shell the implications of this relocation in terms of jobs, strategic investments or sustainability,” he said. Black added.
The move made headlines in the Dutch media on Monday, lamenting the loss of another company after Unilever, as shareholders of another Anglo-Dutch group voted in favor of a London-based parent company in late 2020. Brexit political environment.
Stakeholders must vote on the proposed changes at a public meeting on December 10 in Rotterdam, the Netherlands, which will include the creation of a series of shares. And Class B.
On the British side, Minister of Commerce and Energy Kwazi Quarteng, on the other hand, welcomed the UK’s “clear confidence vote in the economy.”
GMT B class shares rose 1.17% to 1,676.40 pence at 11:30 am.
– Competitiveness, Environment –
For shareholders and environmental purposes, the company justifies itself by saying it wants to “strengthen Shell’s competitiveness” and states that its shares will be listed in Amsterdam, London and New York.
The group wants to “speed up distributions” to shareholders through its share repurchase program.
This rationale “will make it easier for the company to maneuver, but not have a big impact on its performance,” said Laura Hoe, a Horkrews Lansdowne analyst.
The impact on shareholders will “probably be positive, but the future of the group will depend heavily on oil prices,” he added.
In late October, Third Point, an “operator” investment firm, called for the removal of the shell, citing a strategy that was seen as a contradiction between hydrocarbons and energy conversion.
But Richard Hunter, an analyst at Interactive Investor, recalled that it was “impossible” for Shell’s announcements to respond to Third Point’s demands for funding to separate historical research, refinement and chemical activities.
“Shell is proud of its Anglo-Dutch heritage and will continue to be a major employer and maintain a significant presence in the Netherlands,” the group said in a statement.
It has set a goal of halving its greenhouse gas emissions by 2030 compared to its 2016 levels.
The decision follows the Dutch court’s ruling in May that the oil “major” should reduce its emissions by 45% by 2030, and Shell appealed.
But according to Shell, this decision applies “regardless of our tax residence.”
Oil company Royal Dutch Shell suffered a disappointing third-quarter loss due to heavy accounting fees at the end of October.
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