Top executives of Royal Dutch Shell said on Thursday that splitting the group into multiple companies would not work in real life. The statement came as a response against a call from Hedge fund Third Point on the Anglo-Dutch company to break up to improve its performance. Oil majors are diversifying their businesses amid growing pressure to decarbonise.
According to billionaire Daniel Loeb, who runs Third Point, the pressure resulted in Shell having an “incoherent” strategy with “too many different directions.” In a letter to clients, Loeb urges Shell to consider separating its legacy energy production from LNG and renewables businesses.
Shell’s CEO Ben van Beurden said the majority of Shell’s shareholders understand its coherent strategy. CFO Jessica Uhl added that breaking up the group could sound interesting from a financial perspective. However, she noted that Shell’s ability to integrate its businesses is how it will uniquely make a difference in the energy transition.
