Shell to ditch retail energy arm as suitors circle its 1.5m UK customers
Shell has confirmed it has decided to exit its home retail energy businesses in the UK, Germany and the Netherlands due to their poor returns.
Shell launched a strategic review of its European retail businesses in January, citing “tough market conditions”, shortly after chief executive Wael Sawan took office.
“That review has now concluded and as a consequence, we intend to exit those businesses. A sales process is already underway, with the intent to reach an agreement with a potential buyer in the coming months,” Shell said in a statement.
Reuters reported last month that three of Britain’s largest power providers had expressed interest in acquiring Shell’s UK retail business.
Octopus Energy and Ovo have placed bids for Shell Energy and progressed into the second round of bidding, according to the three sources.
British Gas, the retail arm of Centrica, also bid but it was unclear if it had progressed to the second round.
Shell Energy, created with the acquisition of First Utility in 2019, has almost 1.5 million customers after it absorbed several failed rivals in recent years
Octopus declined to comment when approached by Morning Wire
Ovo and Centrica have also asked to comment.
Reuters – Ron Bousso