LONDON (Reuters] – Royal Dutch Shell, LON: announced on Monday that the dual system of Royal Dutch Shell shares will be scrapped in favor of a single share class to improve shareholder payouts and streamline its structure.

MARKET REACTION : Royal Dutch Shell shares rose 1.8% in the first European trading after the announcement.

COMMENTS:

JEFFERIES ANALYSTS

We see benefits in the Shell shares structure restructuring and tax residency. The proposed changes, among other advantages, will allow Shell to purchase back more shares than it was able to previously due in part to Class B share liquidity.

“This important information is critical ahead of the Permian sale and the possibility of an increase in the size of the normal buyback to $1bn/quarter.

STEF BLOK DUTCH ECONOMIC AFAIRS, CLIMATE MINISTER

“We have been in dialogue with Shell’s management regarding the potential consequences of this plan, including crucial investments decisions and the impact on sustainability.

ADAM MATTHEWS CHIEF RESPONSIBLE INVESTRMENT OFFICER CHURCH OF ENGLAND PENIONS BOARD

This decision should be welcomed if it will allow the company to become more flexible in its efforts to achieve net zero. We would be keen to understand how this will drive a more ambitious transition in line with the steps the company still need to take as we outlined in our statement at Shell’s AGM.”

KWASI KWARTENG BRITISH BUSINESS MINISTER

Shell has announced that it will relocate its Group Headquarters from the United Kingdom to help accelerate clean energy transition.