Shell to Sell Home Energy Business in UK and Germany to Octopus Energy, Explores EV Partnership
Shell's Home Energy Business in UK and Germany to be Acquired by Octopus Energy
In a strategic move, Shell has announced the sale of its home energy business in the United Kingdom and Germany to Octopus Energy Group, a leading British energy supplier. This transaction marks the beginning of a partnership between the two companies, with a particular focus on expanding their presence in the electric vehicle (EV) charging sector. This article delves into the details of this significant development in the energy industry.
The acquisition is poised to position Octopus Energy as the second-largest home energy provider in the UK, boasting approximately 6.5 million customers. Currently, only Centrica’s British Gas, with roughly 7.5 million retail customers, holds a larger market share in Britain’s home energy sector (Source: Reuters).
| Company | Value | Change | %Change |
|---|---|---|---|
| NTPC | 230.70 | ₹10.40 | 4.72 |
| ONGC | 181.75 | ₹7.60 | 4.36 |
| JSW Steel | 806.40 | ₹26.75 | 3.43 |
| Tata Steel | 127.05 | ₹4.15 | 3.38 |
| Maruti Suzuki | 10,331.25 | ₹327.45 | 3.27 |
Shell’s decision to divest its home energy retail business in Europe aligns with its strategic goals, as stated by Shell’s Executive Vice-President Steve Hill. The company is prioritizing projects and regions where it can deliver the most value, reflecting the ever-evolving dynamics of the energy market.
Shell Energy Retail Limited in the UK and Shell Energy Retail GmbH in Germany collectively serve around two million customers, offering domestic gas, power, and broadband services under the Shell Energy brand.
Octopus Energy, known for its growth and innovation in the energy sector, recently acquired Bulb, a key competitor. Bulb’s collapse in 2021, driven by surging wholesale gas and electricity prices, created an opportunity for Octopus Energy to further expand its market presence.
The completion of the Shell Energy Retail acquisition by Octopus Energy is anticipated in the fourth quarter of 2023, subject to regulatory approval. Existing Shell Energy Retail customers will receive communication regarding this transition at the appropriate time.
While specific financial details of the deal have not been disclosed, industry sources have previously estimated the transaction’s value to be in the range of $50-100 million.
In addition to the acquisition, Shell and Octopus have signed a memorandum of understanding to explore potential international collaborations in the EV charging sector. This partnership aims to enhance the EV charging infrastructure, benefiting Shell Recharge subscribers and contributing to the evolving landscape of sustainable transportation.
Stay tuned for further developments in this transformative partnership between Shell and Octopus Energy as they venture into new horizons within the energy and EV charging markets.
