Shell-BG Merger News: To Axe 2,800 Jobs Globally; News Follow 7,500 Redundancy Cuts!
Upon completion of its merger with BG Group, Royal Dutch Shell is to cut another 2,800 jobs to convince skeptical investors that the $53 billion deal should close early next year, according to The Telegraph.
This is in part to save costs before its scheduled takeover of BG early next year, following a final green light from China.
China's ministry of commerce unconditionally approved the merger, said Shell Monday, reported IBTimes.
"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," said Shell boss, Ben van Beurden in a statement.
The announcement of the acquisition was made in April 8, and it is the biggest in its sector in ten years. Earlier approvals have been made by the European Union, Brazil and Australia, revealed Reuters.
"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 low for some time," added Beurden. "We will now seek approval from both sets of shareholders as we move towards deal completion in early 2016."
Shell and BG will now send a merger prospectus to their shareholders and for votes on the deal, they will hold special general meetings.
If approved, it will face a 10-day court hearing and may be completed by February.
Shell's share prices has fallen since April which brings the value of the deal down to $53 billion from $70 billion and shareholders have voiced their concern over the acquisition.
Reading-based company BG, which has a staff of 5,200, will likely lose its headquarters after the deal closes as Shell plans to consolidate officers "where practical." Shell has 94,000 employees and the latest job cuts follow 7,500 redundancies announced earlier this year by the company.
After announcing China's approval, Shell said it expected to cut roles globally from the merged group.
Shell B shares were down 1.6 percent by 1217 GMT, while BG shares traded 0.3 percent lower.
