Oil giant Shell has announced plans to end its dual share system, drop "Royal Dutch" from its official name, and relocate its headquarters and tax home from the Netherlands to the UK.
Credit: Shell
Credit: Shell
The move will see Shell CEO Ben van Beurden and CFO Jessica Uhl move to London, where the company will also hold its board meetings.
The company said the move would "increase the speed and flexibility of capital and portfolio actions".
The announcement has been welcomed by the British government, with the Business and Energy Secretary Kwasi Kwarteng tweeting that it was a "clear vote of confidence in the British economy".
The news has not been received well in Amsterdam, with the Dutch government describing it as an "unpleasant surprise".
Dutch Economic Affairs and Climate Minister Stef Blok said: "We are in a dialogue with the management of Shell over the consequences of this plan for jobs, crucial investment decisions and sustainability."
One result of the move in tax home would be that the company will no longer be eligible for the "royal" designation. The name change will be put to a vote by shareholders next month, alongside wider plans for a simplification in corporate structure.
Shell also intends to end its dual share structure, which sees stock divided into A and B classes, though it will still trade in Amsterdam, London and New York markets.
Read more: Shell must cut emissions by 45% by 2030, Netherlands court rules
The announcement comes several months after a Dutch court ruling in May that ordered Shell to reduce its emissions by 45% by 2030 compared with 2019 levels. The landmark case, brought by environmental activists and more than 17,000 Dutch citizens only applies in the Netherlands. The energy giant said in July that it was planning to appeal against the ruling.
The planned changes also occurred following the disclosure of a large stake in Shell by US hedge fund Third Point, led by Daniel Loeb, which has begun pushing for changes including a potential break-up of the energy giant.
Third Point accused Shell of having "an incoherent, conflicting set of strategies attempting to appease multiple interests but satisfying none".
Laura Hoy, an equity analyst at Hargreaves Lansdown, was quoted in The Guardian as saying the changes would not have any significant impact on investors but that "ultimately, the new structure would be a net positive for shareholders as it will streamline the company and make it easier to manoeuvre moving forward".
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