Shall said its acquisition of BG Group will lead to 2,800 job losses

Thousands of jobs to be lost in Shell's BG Group acquisition

Some 2,800 workers will be made redundant as Shell’s planned acquisition of the oil and gas company BG Group receives the green light from China. 

The job cuts, set to affect about 3 per cent of the energy giant’s global workforce, are in addition to the 7,500 staff and contractor positions Shell had said previously it would axe.

It was not revealed how many of the positions to be cut are in the UK.

"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 said in a statement on Monday.

"Shell expects the restructuring will be required to achieve the expected benefits of the recommended combination.”

The acquisition, described as the biggest in the energy industry in a decade, has received a final seal of approval from China after already having been cleared by the European Union, Australia and Brazil.

Some of the job cuts will likely come as Shell attempts to eliminate role duplication and consolidate offices around the world following the transaction.

"Shell's expectation is that BG's business would be integrated into Shell's businesses,” Shell said in the statement.

"The proposed changes are subject to deal completion, engagement with affected employees and relevant employee representatives.”

Shell currently employs some 100,000 people worldwide while BG has around 5,000 staff.

Shell still has some hurdles to clear before the acquisition, announced in early April this year, can go ahead.

The two firms will now send a merger prospectus to their shareholders and hold special general meetings for votes on the deal. If approved, it will face a court hearing 10 days later and could be completed by early February.

Some shareholders, however, have voiced concern over the merits of the acquisition following the sharp slide in oil prices. The fall in Shell's share price since April means the value of the deal has fallen to $53bn from $70bn.

The combination will transform Shell into the world's top liquefied natural gas (LNG) trader and a major offshore oil producer focused on Brazil's rapidly-developing sub-salt oil basin that would rival Exxon Mobil's position as the world's biggest international oil company.

Shell has nevertheless had to battle a sharp slide in oil prices, which have fallen from $55 a barrel in April to below $40 a barrel, which some investors said undermined the deal.


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