Royal Dutch Shell becomes Shell: Oil company moves to Great Britain for tax savings

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Shell in The Hague, The Netherlands:

The Anglo-Dutch oil multinational is revising its share structure and is moving to Great Britain for tax reasons

Photo: A1809 epa ansa Utrecht / dpa

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 at the same time defuse a conflict with the activist shareholder Third Point.

A simple share structure will make it easier for Shell to buy back its own shares, the company said on Monday.

The shareholders are to vote on this on December 10th.

But that's not all: The company, which has long been confronted with questions from investors about its dual structure and was recently convicted by a Dutch court for its climate goals, wants to remove the term "Royal Dutch" from its name - which has been part of its name since 1907 Identity is - and simply rename yourself to "Shell".

The government of the Netherlands spoke of an "unpleasant surprise", while the government in London welcomed the plans.

Shell shares rose on the London Stock Exchange.

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Shell has long been in dispute with the Dutch authorities over the 15 percent withholding tax on dividends, which the group tried to avoid with its two classes of shares.

The new structure would solve this problem, stressed the oil multinational.

Dutch Prime Minister

and his coalition had planned to abolish withholding tax in 2018 in order to keep the headquarters of Shell and Unilever, another Anglo-Dutch company that was also relocated to London.

The Dutch legislature rejected this step.

Investors get out or call for a breakup

Another blow to the relationship with the Netherlands was the announcement of the largest state pension fund ABP, Shell and all fossil fuels from its portfolio.

Monday's move follows a major restructuring that Shell has embarked on as part of its strategy to shift oil and gas to renewables and low-carbon energy.

As part of this restructuring, Shell has already shed thousands of jobs around the world, parted with fossil fuel businesses and expanded its share of renewable energies at the same time.

Shell had stated that it wanted to become climate neutral by 2050, but is under pressure to do more faster.

In May, for example, a Dutch court ordered Shell to step up its planned greenhouse gas emissions reductions in order to comply with the Paris Agreement on climate protection, which aims to limit global warming to 1.5 degrees Celsius.

Shell had announced that it would appeal the judgment.

Shell is also resisting the demands of activist investor Third Point, who last month called for the company to be split into multiple companies.

The top management of Shell rejects this.

rei / Reuters