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Shell Names China Boss To Key BG Merger Post

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Huibert Vigeveno is to lead the integration of FTSE-100 giants Shell and BG after their mega-merger, Sky News learns.

By Mark Kleinman, City Editor: Thursday 28 May 2015

The head of Royal Dutch Shell’s operations in China is to spearhead the oil major’s integration with BG Group as the industry’s biggest-ever takeover inches forward.

Sky News understands that Shell informed senior managers this week that it was naming Huibert Vigeveno, its executive chairman for China, as executive vice-president for integration, with the appointment due to take effect at the beginning of August.

The role being handed to Mr Vigeveno, a long-serving Shell executive, will be a crucial one.

Shell’s cash-and-shares takeover of BG, which was worth £47bn when the deal was unveiled in April, is not due to complete until next year.

The Anglo-Dutch group has made filings seeking approval for the transaction in a number of countries around the world.

Reporting to Simon Henry, Shell’s chief financial officer, Mr Vigeveno is likely to play an important role in determining the fate of hundreds of BG employees, with analysts predicting that many of their jobs are likely to disappear once the deal completes.

Shell has set a target of saving $2.5bn (£1.6bn) annually from 2018 by combining the two companies, with financial calculations predicated upon a recovery in Brent oil prices from the current depressed level to $75-a-barrel by 2017 and $90-a-barrel between 2018 and 2020.

The takeover will strengthen Shell’s position in liquefied natural gas (LNG), and bolster its proven oil and gas reserves by 25%.

Some analysts expect China’s Ministry of Commerce to seek additional concessions as a condition for approving the deal, which could potentially involve the disposal of some LNG assets.

Shell, which declined to comment further on Mr Vigeveno’s appointment, has also said that it expects to make up to $30bn-worth of asset sales during the two years following the takeover.

SOURCE

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Shell names top executive to lead BG integration

Thu May 28, 2015 1:13pm BST

Royal Dutch Shell (RDSa.L) has appointed the head of its Chinese operation to spearhead the integration with smaller British rival BG Group (BG.L) once the $70 billion deal is completed.

Huibert Vigeveno, currently executive chairman for Shell in China, has been appointed Executive Vice President, Integration with effect from 1 August, according to a internal memo to employees posted on Tuesday.

“Huibert will lead the integration planning for the proposed combination with BG,” the company said. He will report to Chief Financial Officer Simon Henry.

Shell’s acquisition of BG is expected to be completed by early 2016. The proposed deal will require regulatory go-aheads from key governments, including China and Brazil, before it can be brought before shareholders for approval.

The Anglo-Dutch company has said it will sell up to $30 billion of assets following the integration, which will shift Shell’s focus heavily to the liquefied natural gas (LNG) and deepwater oil sectors.

(Reporting by Ron Bousso; Editing by Pravin Char)

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