Shell wants to move its headquarters to the United Kingdom and angered the Netherlands

Royal Dutch Shell, an Anglo-Dutch hydrocarbon company, on Monday announced plans to relocate its headquarters and tax residence from the Netherlands to the United Kingdom, which has been criticized by the Dutch government.

The group wants to simplify its structure and “align its tax residence with the country in which it is registered, the United Kingdom,” where it will relocate its governing bodies, a statement said.

The Dutch government said on Monday it was “unduly surprised” and “deeply sorry”, Economic Affairs Minister Steph Black said on Twitter.

For the first time in 130 years the Royal will be removed from the Dutch name.

“We are discussing with Shell the implications of this relocation in terms of jobs, strategic investments or sustainability,” he said. Black said.

The move made headlines in the Dutch media on Monday, lamenting the loss of another company after Unilever, another Anglo-Dutch group whose shareholders in the Netherlands voted in favor of a London-based parent company by the end of 2020. The post-Brexit political climate.

Stakeholders must vote on the proposed changes at a public meeting in Rotterdam, the Netherlands, on December 10, which will include the creation of a series of shares. And Class B.

On the British side, Minister of Commerce and Energy Kwazi Quarteng, on the other hand, welcomed the UK’s “clear confidence vote in the economy.”

GMT Class B shares were up 1.17% at 1,676.40 pence at 11:30 am.

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– Competitiveness, Environment –

For shareholders and environmental purposes, the company justifies itself by saying it wants to “strengthen Shell’s competitiveness” and states that its shares will be listed in Amsterdam, London and New York.

The group especially wants to “speed up distributions” to shareholders through its share repurchase program.

This rationale “will make it easier for the company to maneuver, but not have a big impact on its performance,” said Laura Hoe, a Horkrews Lansdowne analyst.

The impact on shareholders will “probably be positive, but the future of the group will depend heavily on oil prices,” he added.

In late October, Third Point, an “operator” investment firm, called for the removal of the shell, citing a strategy that was seen as a contradiction between hydrocarbons and energy conversion.

Shell wants to move its headquarters to the United Kingdom and angered the Netherlands

But according to Richard Hunter analyst at Interactive Investor, Shell’s announcements do not appear to be in response to Third Point’s demands, recalling the request for funding to separate historical research, refining and chemical operations.

“Shell is proud of its Anglo-Dutch heritage and will continue to be a major employer and maintain a significant presence in the Netherlands,” the group said in a statement.

It has set a goal of halving its greenhouse gas emissions by 2030 compared to its 2016 levels.

The decision follows the Dutch court’s ruling in May that the oil “major” should reduce its emissions by 45% by 2030, and Shell appealed.

But according to Shell, this decision applies “regardless of our tax residence.”

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Oil company Royal Dutch Shell was disappointed at the end of October with a third-quarter loss on major accounting fees.

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