Royal Dutch Shell (RDS.A) - Get Royal Dutch Shell Plc Sponsored ADR Class A Report plans to scrap its dual share structure and move its headquarters from the Netherlands to Britain.
On Monday, the old giant said that it’s also dropping “Royal Dutch” from its name. The company said the simplification of its share structure would make Shell “more competitive.”
“At a time of unprecedented change for the industry, it’s even more important that we have an increased ability to accelerate the transition to a lower-carbon global energy system," said Shell chair Sir Andrew Mackenzie. "A simpler structure will enable Shell to speed up the delivery of its Powering Progress strategy, while creating value for our shareholders, customers and wider society.”
Britain’s business and energy secretary appreciated Shell’s decision calling it “a clear vote of confidence in the British economy."
However, the Netherlands was “unpleasantly surprised” with Shell’s intention. Dutch Minister of Economic Affairs Stef Blok said that they are “in talks with Shell about the implications…”
"Shell has assured us that the personnel consequences of this decision will be limited to the relocation of a number of executive/board positions from the Netherlands to the United Kingdom," Blok added.
The company’s shareholders will vote on the proposals in its general meeting scheduled for December 10.