For a long time, Shell had headquarters in the Netherlands and the UK. Finally, last year the move was made to become fully British, with only one head office located in London.
Prior to this decision, a group of senior managers would have considered the benefits of moving to the US. Recently appointed CEO Vel Chavan is said to be involved.
A potential move should have had a positive effect on Shell’s stock market value. According to insiders, the energy company fears that US rivals ExxonMobil and Chevron are overvalued. Both companies have six times their cash flow to market capitalization, while Shell’s cash flow is only three times. Nevertheless, it was ultimately decided not to move the headquarters to the US.
However, the company still sees opportunities to increase stock market value. According to Financial Times So shale oil and gas extraction can draw a line through the slow exit. British rival BP recently took a similar move, which worked positively for the company’s stock market value.
During official negotiations, CEO Chavan would never have supported moving the headquarters to the US, Shell told a British business newspaper. The company also says it intends to continue working towards energy transition.
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