A tank in a Shell group refinery in the suburbs of Rotterdam on November 15, 2021 (ANP / Robin UTRECHT)
The oil giant Royal Dutch Shell hit a bombshell on Monday by announcing that it wanted to transfer its headquarters to the United Kingdom, sparking indignation in the Netherlands, which should lose their biggest company.
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 would also relocate its governing bodies, according to a statement.
The Dutch government said Monday it was “unpleasantly surprised” and “deeply regrets” this decision, Economic Affairs Minister Stef Blok said on Twitter.
The move would deprive the Netherlands of its largest company and “Royal Dutch” would also be removed from the name for the first time in 130 years, leaving only “Shell”.
“We are in discussions with Shell about the implications of this transfer in terms of jobs, strategic investments or sustainability,” added Mr. Blok.
The decision made the headlines of the Dutch media on Monday, which lamented the loss of another 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 in London. , in a post-Brexit political context.
Shell’s announcement “is a huge bloodshed for the Netherlands,” even denounced the employers’ organization VNO-NCW.
– Competitiveness, environment –
Shareholders will have to vote on December 10 at a general meeting in Rotterdam, the Netherlands, on the proposed changes, which also include the creation of a single series of shares, while the group was listed until here via two types of titles, Class A and Class B.
A building in the Shell group’s refinery in the suburbs of Rotterdam, November 15, 2021 (ANP / Robin UTRECHT)
On the British side, the Minister for Business and Energy Kwasi Kwarteng welcomed on the contrary “a clear vote of confidence in the economy” of the United Kingdom.
Class B shares gained 1.18% to 1,676.60 pence shortly after 12:30 GMT.
The company justifies itself by saying that it wants to “strengthen Shell’s competitiveness”, for the benefit of both shareholders and environmental objectives, and specifies that its shares will remain listed in Amsterdam, London and New York.
The group intends in particular to “accelerate distributions” to shareholders via its share buyback program.
This rationalization “will make the company easier to maneuver, but should not have a huge impact on its performance,” said Laura Hoy, analyst at Hargreaves Lansdown.
The impact for shareholders “will probably be positive, but the future of the group remains very dependent on the price of oil,” she adds.
– Activist fund –
The company could however benefit from a more accommodating tax policy across the Channel, adds the analyst to AFP: “We can think that the tax bill could be reduced as a result of the tax on companies in the UK is lower than in the Netherlands “although this impact is” difficult to quantify “.
But Shell said Monday not to expect “a significant impact on the total tax burden of the group” with a transfer of tax residence, adding that the group would even have to pay an “exit tax” in the Netherlands which could reach $ 400 million.
In addition, corporate tax is due to increase in the United Kingdom from 2023.
At the end of October, an “activist” investment company, Third Point, called for the dismantling of Shell, citing a strategy considered contradictory between hydrocarbons and energy transition.
A tank in a Shell group refinery in the suburbs of Rotterdam on November 15, 2021 (ANP / Robin UTRECHT)
But “it seems unlikely” that Shell’s announcements will respond to Third Point’s demands, according to Richard Hunter analyst at Interactive Investor, recalling that the fund was asking that the historical exploration, refining and chemicals activities and related activities be split. to low carbon energies.
“Shell is proud of its Anglo-Dutch heritage and will continue to be a major employer and maintain a significant presence in the Netherlands”, particularly in renewable energies, promises the group.
Shell has set itself a target of reducing its greenhouse gas emissions by half by 2030 compared to its 2016 levels, at its sites as well as for the energy it purchases elsewhere, a decision taken in particular at the following the judgment in May of a Dutch court ordering it to reduce its emissions by 45% by 2030.
Shell has appealed, but the ruling applies “regardless of our tax residence,” Shell said on Monday.
The group had disappointed at the end of October with a loss in the third quarter due to a massive accounting charge.
bur-ode / ved / LyS