Shell updates on its intentions for the combined Shell-BG group

In advance of completion of its recommended combination with BG Group, Shell today announced further details of the proposed operational and administrative restructuring under consideration. Shell expects the restructuring will be required to achieve the expected benefits of the recommended combination, including previously disclosed and reported-on pre-tax synergies of $3.5 billion (subject to the bases of belief, principal assumptions and sources of information set out in the Appendix to the announcement made by Shell on 3 November 2015 providing investors with a strategic update). Shell’s expectation is that BG’s business would be integrated into Shell’s businesses. 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 rationalisation in the UK, Shell will, following deal completion, undertake a comprehensive review during the course of 2016. Shell currently expects an overall potential reduction of approximately 2,800 roles globally across the combined group, or approximately 3% of the total combined group workforce. These reductions are in addition to the previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally. The proposed changes are subject to deal completion, engagement with affected employees and relevant employee representatives. Further detailed work will be undertaken on the details of the proposed operational and administrative restructuring as part of ongoing integration planning. The deal remains on track for completion in early 2016.

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