ROYAL Dutch Shell shareholders have approved the $50 billion (£35bn) takeover of BG, removing the last main obstacle in the way of completion of a deal which could trigger a big shake up of the firms’ North Sea operations.
Shareholders in BG are expected to approve the takeover tomorrow, paving the way for the firms to combine on 15 February.
However, there was a sizable vote against the deal on the part of shareholders in Shell, with 17 per cent of votes cast opposing the transaction.
Earlier this month Standard Life Investments said it would vote against the deal as a shareholder in Shell.
The Edinburgh-based asset manager said the proposed terms of the acquisition were value destructive for Shell shareholders.
Head of equities David Cumming said the view was based on the downside risks to Shell’s oil price assumptions plus the tax and operational risks surrounding BG’s Brazilian asset base.
It was then reported that Standard Life Investments planned to vote its BG shares in favour of the deal.
The value of the cash and shares deal has fallen by £12bn since it was announced in April, from £47bn, reflecting the impact of the crude price plunge on Shell’s shares.
However, the Anglo Dutch giant’s chief executive, Ben van Beurden, said the positive vote showed the confidence shareholders felt in the strategic logic of the combination of Shell and BG.
There have been fears the takeover will be followed by deep cuts in the combined North Sea operations of the two firms.
In December Shell said it expects to cut 2,800 roles globally following the deal. The company, which employs 500 people in a finance centre in Glasgow, said the cuts will focus on areas of duplication between Shell and BG’s functions. This includes in areas like human resources.
Both firms have big operations centres in Aberdeen. They have around 2,800 staff and contractors working for them in the North Sea in total.
Shell has said it plans to reduce its exposure to mature North Sea fields.
The company has already cut 500 North Sea jobs in response to the crude price slump since June 2014.
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