14th Dec 2015 10:44
LONDON (Alliance News) - Royal Dutch Shell PLC on Monday said it expects around 3.0% of the combined workforce of it and BG Group PLC will be cut following the completion of the GBP47.0 million merger of the two.
The news came after Shell confirmed the Chinese Ministry of Commerce gave its unconditional clearance for the deal, adding to the approvals the pair already received in Brazil, the European Union and Australia. The Chinese clearance is the final pre-conditional approval required for the deal.
"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," said Ben van Beurden, Shell's chief executive in the early announcement.
Shell also then laid out its restructuring plans for the merger to back its estimate of USD3.5 billion in annual synergies to be achieved. Shell said it expects to cut around 2,800 jobs globally across the combined company. These would be in addition to the 7,500 jobs Shell is already planning to cut within its own operations.
The proposed changes remain subject to the deal being fully completed, an engagement process with the employees who are affected, and consultation with relevant employee unions.
Shell 'A' shares were down 0.4% to 1,447.50 pence on Monday, while its 'B' shares were down 0.1% to 1,460.50p. Shares in BG were up 1.5% to 940.00p.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
RDSA.LRDSB.LBG..L