Monday, 14 December 2020 21:57

Shell plans job cuts after BG takeover

Shell plans job cuts after BG takeover

Shell has announced plans to reduce its global workforce by approximately 2,800 if its planned takeover of British oil firm BG Group is successful.

The roles account for 3% of the firm’s total combined global workforce, and are in addition to previously-announced plans to cut 7,500 jobs and contractor positions.

Shell first proposed the takeover of BG Group in April, valuing the firm at £47billion.

Both firms operate in the North Sea, with offices in Aberdeen.

Today Shell announced that its deal had received “unconditional merger clearance” from the Chinese Ministry of Commerce, following previous approvals in Brazil, the EU and Australia. The MOFCOM clearance marks the final pre-conditional approval required for the combination, and the deal expected to be completed in early 2016.

In a statement to investors, the firm said: “Shell’s expectation is that BG’s business would be integrated into Shell's 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 rationalisation in the UK, Shell will, following deal completion, undertake a comprehensive review during the course of 2016.”

CEO Ben van Beurden added: “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.”


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