Energy giant Shell on Monday announced plans to move its headquarters from the Netherlands to the UK and drop Royal Dutch from its name in a major shake-up that angered the Dutch government.
The plan, seen as a post-Brexit boon for London, will see the company switch its tax residence to the UK.
Shell’s plan to end its Anglo-Dutch structure also follows pressure by activists in the Netherlands for the company to slash its harmful emissions.
“We are unpleasantly surprised by this. The cabinet deeply regrets this intention,” Economic Affairs Minister Stef Blok said in a statement on Twitter.
Royal Dutch would be dropped from the name for the first time in 130 years.
“We are in talks with Shell about the implications of this move for jobs, critical investment decisions and sustainability. Those are hugely important,” Blok added.
Shell said it plans to relocate to the UK its chief executive Ben van Beurden and chief financial officer Jessica Uhl on condition of shareholder approval in a vote due December 10.
The company has been incorporated in the UK with Dutch tax residence since the 2005.
This followed the unification of Koninklijke Nederlandsche Petroleum Maatschappij and The Shell Transport and Trading Company under a single parent company.
Shell said in Monday’s statement that it “is proud of its Anglo-Dutch heritage and will continue to be a significant employer with a major presence in the Netherlands”.
The company said its projects and technology division, global upstream and integrated Gas businesses and renewable energies hub would remain located in The Hague.
Shares will continue to be listed in Amsterdam, London and New York, it added.
The group, however, plans to “align Shell’s tax residence with its country of incorporation in the UK, where it will hold board and executive committee meetings, and locate its chief executive and chief financial officer”.
The proposal will meanwhile “establish a single line of shares to eliminate the complexity of Shell’s A/B share structure”, it added.
Shell’s UK plans come after consumer goods giant Unilever became a wholly British company at the end of the last year after it completed a merger of its Dutch and British corporate entities.
Another setback for the Netherlands, and indeed Shell, saw a Dutch court in April order the company to slash its greenhouse gas emissions in a landmark victory for climate activists.
Shell must reduce its carbon emissions by 45 per cent by 2030 as it is contributing to the “dire” consequences of climate change, the court in The Hague ruled.
The largest Dutch pension fund, ABP, then announced in October that it would stop investing in all fossil fuel companies including Shell.
At the same time, however, Amsterdam has gained on London’s financial hub following Brexit.