Shell makes surprise bid for Post Office broadband division
Oil giant Shell is said to have made a surprise entry into the race to snap up the Post Office’s telecoms division, paving the way for a potential shake-up of the UK broadband market.
The FTSE 100 company already has a presence in the telecoms market after taking control of energy and broadband provider First Utility in 2018.
But it is now one of three remaining bidders for the Post Office’s telecoms arm, Sky News reported.
Media behemoth Sky and broadband firm Talktalk are also said to be in the running in the auction process.
The Post Office has tapped bankers at PJT Partners to oversee the sale of its telecoms division, which has half a million customers and is expected to fetch more than £100m.
But while Sky and Talktalk could be seen as natural bidders for the business, a successful bid from Shell could pave the way for a major new player in the market.
Shell Energy Retail currently has 130,000 broadband customers in the UK, as well as 870,000 energy accounts, as a result of its takeover of First Utility.
A takeover of the Post Office’s operations would therefore mark a huge expansion in its customer base, though it would still be well behind Sky and Talktalk.
In addition to the telecoms sale, the Post Office has also appointed Fenchurch Advisory Partners to conduct a strategic review of its insurance business.
The sales mark a first major shake-up by chief executive Nick Read, who ordered a comprehensive review of the company after taking over last year.
Shell and Sky declined to comment. Talktalk has been contacted for comment.