Royal Dutch Shell Plans to Restructure for Energy Transition

Royal Dutch Shell announced that it plans to scrap its dual share structure and move its headquarters from the Netherlands to the U.K., pending a shareholder vote next month.

The oil giant said on Monday that it plans to simplify its complex dual structure to make it easier for investors to value the company. It will also take up tax residence in the U.K. where it was incorporated and conduct board meetings there instead of the Netherlands.

Shell said in its announcement that the simplification will aid the company in transitioning to net-zero emissions. 

In line with the restructuring, the company also aims to drop “Royal Dutch” from its name to become Shell Plc.

The proposal followed a ruling by the Dutch court earlier this year mandating Shell to reduce its emissions by 45% by 2030. In a tweet, the Dutch government said on Monday that it was “unpleasantly surprised” by Shell’s proposal.

“We are in talks with Shell about the implications of this move for jobs, critical investment decisions and sustainability. Those are hugely important,” Economic Affairs Minister Stef Blok said in Dutch.

Shell, however, maintained that the move was not meant for the company to run away from the Dutch court case. 

“If we were to relocate to any other country the verdict would simply follow us in terms of enforcement,” said Shell CEO Ben van Beurden.

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