THE HAGUE, the Netherlands – The Royal Dutch Shell plc-BG Group plc recommended combination has received unconditional merger clearance from the Chinese Ministry of Commerce (MOFCOM).
Shell CEO Ben van Beurden said: “We’re grateful to MOFCOM for its thorough and professional review of the recommended combination, and I am delighted we now have all the pre-conditional approvals needed to move to the next important phase.
“This is a strategic deal that will make Shell a more profitable and resilient company in a world where oil and gas prices could remain lower for some time. We will now seek approval from both sets of shareholders as we move towards deal completion in early 2016.”
In advance of completion of its recommended combination with BG Group, Shell also announced further details of the proposed operational and administrative restructuring under consideration.
The company says it expects the restructuring will be required to achieve the expected benefits of the recommended combination, including previously disclosed and reported-on pre-tax synergies of $3.5 billion.
Shell’s expectation is that BG’s business would be integrated into its businesses. As part of that, Shell proposes that office consolidation will be undertaken where practical in certain locations around the world.
With regards to office footprint rationalization in the UK, the company will, following deal completion, undertake a comprehensive review during 2016.
Shell says it currently expects an overall potential reduction of approximately 2,800 roles globally across the combined group, or approximately 3% of the total combined group workforce. These reductions are in addition to the previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally.
The proposed changes are subject to deal completion, engagement with affected employees, and relevant employee representatives. Further detailed work will be undertaken on the details of the proposed operational and administrative restructuring as part of ongoing integration planning.
The deal remains on track for completion in early 2016.
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