Shell CEO Ben van Beurden. Image courtesy of Shell/Youtube.

Royal Dutch Shell and BG Group shareholders will vote on the pending merger between the two firms late next month.

The companies said Monday that Shell and BG expect to convene shareholder meetings to approve the recommended combination on January 27 and January 28.

BG is currently seeking the approval of the UK High Court to publish its scheme document and convene the related shareholder meetings, the companies added.

Following High Court approval, the scheme document will be published as soon as practicable, currently expected to be on December 22.

Subject to approval of the UK Listing Authority, the Shell shareholder circular and prospectus are expected to be published at the same time as the scheme document.

Last week, Shell announced that it will cut 2,800 jobs as part of a broader restructuring plan to be implemented after it completes its merger with BG Group.

Shell currently expects an overall potential reduction of 2,800 roles globally across the combined group, or about 3 percent of the total combined group workforce.

The new round of cuts is in addition to the company’s previously announced plans to reduce its headcount and contractor positions by 7,500 globally.

The company has also proposed that office consolidations should be undertaken “where practical in certain locations around the world.”

Shell said it expects the restructuring will be required to achieve the expected benefits of the recommended combination, including previously disclosed pre-tax synergies of $3.5 billion.

Chinese antitrust regulators approved the combination last week, marking the end of the pre-conditional approval process.

The merger is expected to be completed in early 2016.

Royal Dutch Shell agreed in April to acquire UK-based BG Group for about $70 billion in cash and shares.

The deal is expected to boost Shell’s proved oil and gas reserves by 25 percent and raise its production by 20 percent.


Leave a Reply