Shell to Retain Four Senior BG Execs post-Merger
Posted by Michelle Howard
Monday, November 16, 2015
Royal Dutch Shell plans to retain four members of BG Group's executive team after the companies' planned merger next year, according to an internal memo seen by Reuters on Monday.
The memo indictates that the planned $70 billion takeover of BG by Shell remains on track. Shell this month sought to ease investor concerns over the deal by announcing costs cuts and benefits that would make it work despite lower oil prices.
According to the Shell document, BG's Chief Operating Officer Sami Iskander will become executive vice president for joint ventures. Executive Vice President for Global Energy Marketing and Shipping Steve Hill will be named executive vice president for gas and energy marketing and trading while BG General Counsel Tom Melbye Eide will become general counsel for upstream.
Katie Jackson, BG Group's executive vice president for global strategy and business development, who joined the company last year from Norwegian oil company Statoil, will also take up a yet unspecified role in the company, according to the memo.
Shell hopes to complete the proposed acquisition early next year. The merger, which will make Shell the world's top liquified natural gas trader and a key offshore oil prodicer, still requires regulatory approvals from Australia and China before being brought before shareholders.
A Shell spokesman confirmed the memo, which was first reported by Bloomberg, saying the announcement "shows there is momentum behind the proposed merger with BG Group."
A BG spokesman also confirmed the proposed appointments.
BG Chief Executive Officer Helge Lund, who joined the company from Statoil in February 2015, has said he would not stay on after the merger.
Reporting by Ron Bousso