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Shell has announced plans to close offices of its acquired BG Group in the UK by the end of this year as part of its voluntary redundancy programme.

In February 2016, Shell completed its deal to acquire BG Group in a transaction valued at $70bn and owns its entire share capital now.

The acquisition was initially announced in April 2015.

After concluding the deal, Shell planned to spin-off assets worth $30bn at a time when price pressures were working against it.

Shell’s decision to close BG Group’s offices in Reading, Aberdeen and Manchester is part of its plan to save costs, which also involves cutting 10,300 jobs globally.

"Shell is under pressure to cut costs due to weak oil prices."

Around 2,800 of the total jobs are connected with the integration of BG Group, with 7,500 from its existing staff and direct contractor base.

In addition, the company will offer voluntary redundancy packages to its staff in the UK.

Sky News reported Shell head of transition Huibert Vigeveno saying that the Thames Valley operation at former BG office in Reading will also be closed by 2016-end.

Shell is under pressure to cut costs due to weak oil prices, and will close BG Group’s Aberdeen office and shift the operations to Tullos.

By 2017-end, the Brabazon House office in Manchester is planned to be closed.

Prior to closing the sites and offering voluntary redundancy packages, Shell said it will consult with its staff.

Image: Royal Dutch Shell head office, Carel van Bylandtlaan, The Hague. Photo: courtesy of P.L. van Till.