Shell wants to transfer its tax headquarters to the UK and sparks outrage in the Netherlands

The Anglo-Dutch oil company Royal Dutch Shell announced that it wants to transfer its headquarters and fiscal residence to the United Kingdom, a decision criticized by the Dutch government.

The group wants “align your tax residence with the country in which you are registered, the United Kingdom”, Where he also plans to move the offices of his chief executive and financier.

Shareholders must decide on these modifications on December 10.

“An unpleasant surprise“For the Dutch government, that”deeply regrets”The decision, as stated on Twitter by the Minister of Economic Affairs, Stef Blok.

For the first time in 130 years, Royal Dutch It will no longer be part of the name.

“We are in negotiations with Shell about the implications of this decision for jobs, key investments and sustainability.“Blok added.

Modifications also include creating a unique series of actions. Until now, the group traded in Class A and Class B shares.

This announcement made the headlines of the Dutch press on Monday, which mourns the loss of another large company, after Unilever, another Anglo-Dutch group whose shareholders in the Netherlands had voted at the end of 2020 in favor of a single parent company based on London, in a post-Brexit political context.

On the British side, the Minister of Business and Energy, Kwasi Kwarteng, welcomed this “clear vote of confidence in the economy” from United Kingdom.

Competitiveness and environment

The company justified the measure to “simplify the shareholding structure” and “strengthen Shell’s competitiveness”, For the benefit of both shareholders and the group’s environmental objectives. Its shares will continue to trade in Amsterdam, London and New York.

The group wants “speed up distributions”To its shareholders through its share purchase program.

The operation “it will make the business easier to manage, but it shouldn’t have a huge impact on your performance”, Clarified Laura Hoy, an analyst at Hargreaves Lansdown.

The impact for shareholders “It will surely be positive, but the future of the group continues to depend a lot on the price of oil”He added.

At the end of October, an investment company “activist”, Third Point, called for the dismantling of Shell, denouncing a contradictory strategy between hydrocarbons and the energy transition.

But “seems unlikely“That Shell’s announcements respond to calls from Third Point, according to Interactive Investor analyst Richard Hunter, who recalled that the fund called for dividing historical exploration, refining and chemicals activities from activities related to low-carbon energies. .

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

The multinational has set a goal to cut its greenhouse gas emissions in half by 2030, compared to 2016 levels, at its facilities and for the energy it buys elsewhere.

This decision followed a May ruling by a Dutch court ordering the group to cut its emissions by 45% by 2030. Shell appealed.

But this strategy applies “whatever our tax residenceShell pointed out.

Royal Dutch Shell received a severe setback in October with losses in the third quarter, due to a massive accounting burden.