Royal Dutch Shell official incorporates British energy company BG Group under its banner after latter company removed from trading. Photo courtesy of Royal Dutch Shell
THE HAGUE, Netherlands, Feb. 15 (UPI) -- British energy company BG Group is now a unit within the corporate structure of Royal Dutch Shell, the Hague-based supermajor announced Monday.
"The entire issued ordinary share capital of BG Group is now owned by Shell," the Dutch supermajor said in a statement.
Fewer than 20 percent of the combined shareholders in Shell and BG Group voted against what was described as a corporate combination. The $7 billion tie-up is the largest of its kind since Exxon and Mobil joined forces in the 1990s.
A high court in London announced last week it sanctioned the financial mechanisms to pull BG off the London Stock Exchange. Trading was suspended at the close of trading Friday and the delisting went into force Monday.
BG Group in early February issued its last report as an independent company, recording a pre-tax profit of $2.97 billion, against a loss of $2.3 billion in 2014. Shell in January said it expected fourth quarter profits to come in at around 50 percent lower year-on-year as the industry continues to suffer from the dramatic declines in crude oil prices.
Shell Chief Executive Officer Ben van Buerden said teaming up with BG Group would mark the start of a new chapter for the Dutch supermajor. Costs will move lower by about $4 billion for 2016, but also result in widespread redundancies. About 10,000 staff and director contractor positions will be eliminated across both companies.
Shell said combining with BG Group would mark the start of a new chapter for the company as it builds its portfolio with emerging assets of liquefied natural gas.