Royal British Shell?

Issue 97

Royal Dutch Shell plans to consolidate its longstanding dual British and Dutch structure and relocate its headquarters to London, a move it said would help facilitate higher returns to shareholders and make it simpler to change up its portfolio of assets in a post Brexit world.

The oil behemoth said that ending its complex structure should also make it easier for investors to adequately value the company, at a time when it has committed to transitioning to low-carbon energy. The plan however, may help Shell avoid strict carbon reduction regimes imposed by the Dutch government. Shell’s shares spiked following the announcement.

Under its new plan, the company’s chief executive and board meetings relocated to Great Britain. The company would also take up tax residence in the U.K., instead of the Netherlands. The restructure envisages a name change dropping the Royal Dutch designation it has held for more than 130 years to become just Shell.

Source: Wall Street Journal