Shell to axe 2,800 jobs ahead of BG takeover as merger receives Chinese antitrust approval

As it prepares for the takeover of smaller rival BG, Royal Dutch Shell has revealed it is cutting 2,800 roles. The job cuts are in addition to previously announced redundancies which were announced to lower overhead costs.

The cuts represent 3% of Shell's workforce and the axe is set to fall across the board. The total jobs cull will be around 7,500.

The reductions were announced after Chinese antitrust regulators approved the merger. The green light means the two major oil firms are on track to complete the takeover that would create one of the world's biggest petrol companies.

Approval by the Chinese authorities is the latest hurdle to be navigated by the companies, already granted the go-ahead from regulators in Australia, EU and Brazil, where most of the merged firm's operations are likely to be based.

China's ministry of commerce (MOFCOM) unconditionally approved the merger. "We're grateful to MOFCOM for its thorough and professional review of the recommended combination, and I am delighted we now have all the pre-conditional approvals needed to move to the next important phase," Shell boss Ben van Beurden said in a statement.

He added: "This is a strategic deal that will make Shell a more profitable and resilient company in a world where oil and gas prices could remain low for some time. We will now seek approval from both sets of shareholders as we move towards deal completion in early 2016."

Shortly after the opening bell on Monday, BG's share price jumped by more than 1.2% and reached 2.15% in late morning trading. while Shell was mainly flat. The BG takeover would make Shell the top LNG (liquefied natural gas) trader in the world putting it in direct competition against Exxon Mobil in Brazil.

The deal amounts to around $70bn (£46.08bn, €63.9bn) and is the biggest M&A agreement in the oil sector in recent years.