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Thousands more jobs at risk as Shell counts cost of BG takeover

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Martin Waller warns of a chance that “The Shell board could rise up in protest against Mr van Beurden…”

Robin Pagnamenta Energy Editor: Saturday 28 November 2015: Page 65

Royal Dutch Shell is drawing up plans for more cost-cutting after its £43 billion takeover of BG Group, amid mounting pressure from shareholders to bolster the commercial logic of the deal amid falling oil prices.

The oil giant, which already has unveiled plans to slash $3.5 billion from the combined group, is understood to believe that it can wring still more in costs from the proposed merger, which is expected to be completed next year.

The extra job cuts are likely to involve thousands more job losses across both companies…

Summation by John Donovan of other points made in the article: 

  • Expected that BG’s Reading HQ and other offices will be closed
  • A Jupiter fund manager has implied that the takeover could be disastrous
  • Some critics say that Shell should renegoiate the terms
  • Ben van Beurden has staked his reputation on the success of the deal 

FULL ARTICLE (Subject to subscription)

There is a related article by Martin Waller covering the same points on page 66 of the same newspaper. Martin Waller warns of a chance that “The Shell board could rise up in protest against Mr van Beurden…” but believes the deal will likely go through.

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