- Energy major Royal Dutch Shell has moved to simplify the company’s share structure as part of a push to accelerate its transition to a net-zero company.
- As a result, the company will also remove the Royal designation from its name.
Shell expects to drop the words “Royal Dutch” from its name to become “Shell Plc” as it seeks to ditch its dual share structure and move its tax residence to the UK from the Netherlands, reports Argus Media.
Breakup of Shell
Royal Dutch Shell said that it will abandon its dual-share structure in favor of a single class of shares to eliminate the complexity of its current system, and that it will move its tax residence from the Netherlands to the U.K., where it is incorporated.
New York-based hedge fund Third Point three weeks ago announced that it had taken a stake in the U.K.-Dutch oil-and-energy group, and called for a breakup of Shell into separate companies, including a legacy oil-and-gas unit and a clean energy company with aggressive investments in renewables.
Speeding up green transition
A court in The Hague last May ordered the company to speed up its green transition and cut its carbon emissions by 45% by the end of 2030 compared with 2019 levels. Shell said that its decision to simplify its share structure will accelerate both shareholder distributions and delivery of its strategy to become a net-zero-emissions energy business.
The oil-and-energy giant also said that it will drop Royal Dutch from its name, as it anticipates it will no longer meet the conditions for using the Royal designation. Shell shares will remain listed in London, Amsterdam, and New York. The stock was up 2.2% in London morning trading.
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Source: Argus Media