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Shell-BG Deal Clears Another Hurdle; Job Cuts Planned

A combined Royal Dutch Shell plc and BG Group plc would have about 2,800 fewer workers after global workforce reductions, Shell said Monday, as the planned combination received its final pre-conditional regulatory approval.

Shell said the planned job cuts, about 3% of the combined workforces, are in addition to job cuts it took in July to eliminate about 7,500 employees and contractors (see Daily GPIJuly 30). The merger-related restructuring is necessary to achieve previously announced pre-tax synergies from the deal worth $3.5 billion.

"Shell's expectation is that BG's business would be integrated into Shell's businesses," the company said. "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 rationalization in the UK, Shell will, following deal completion, undertake a comprehensive review during the course of 2016."

The Shell-BG deal has received unconditional clearance from the Chinese Ministry of Commerce (MOFCOM), Shell said Monday. Following previously announced approvals in Brazil, the European Union and Australia, MOFCOM clearance marks the final pre-conditional approval required for the combination (see Daily GPIDec. 3).

The deal is expected to be completed early next year.

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