The Anglo-Dutch energy firm plans to simplify its structure to a single class of shares to boost shareholders payouts, thus creating a large single pool of ordinary shares that the company can buy back. Following Monday’s news, shares in Shell surged by as much as 2.5%. 

The move by Shell comes as a bid to “strengthen its competitiveness” and less than a month after Wall Street activist Third Point revealed a stake in the energy firm. 

Third Point, founded by Dan Loeb in 1995, had previously called for Shell to split into multiple businesses to increase its market value and boost its performance. Meanwhile, Shell said the changes would “increase the speed and flexibility of capital and portfolio actions” as the firm gradually shifts from oil and gas to sustainable energy. 

“The Board unanimously believes that the Simplification will strengthen Shell’s competitiveness and accelerate both shareholder distributions and delivery of its strategy to become a net-zero emissions energy business,” Sir Andrew Mackenzie, Chair of the Board of Royal Dutch Shell said.