TalkTalk buys Shell UK’s former broadband customers in Octopus Energy deal
TalkTalk Telecom will acquire nearly half a million retail customers from Shell via UK energy darling Octopus Energy.
According to a Sky News’ Mark Kleinman reported this morning, the telecomms giant is set to gain around 480,000 broadband customers of Shell Energy Retail UK from Octopus Energy, though the decision has been mooted for some time.
TalkTalk will gain the retail margin from the new additions, but will not get a wider customer base as the company already serves the former Shell customers through its wholesale platform, Sky reported.
The agreement is expected to be announced in the coming days.
Octopus completed the purchase of Shell Energy Retail UK and Germany at the start of this month, after the deal was first announced in September. The move, Shell calculated, would remove about $300m (£238m) in its annual operating expenses.
Shell decided to exit both the UK energy and telecoms supply business; Shell Energy broadband held approximately a 2.1 per cent market share in June.
The move upped Octopus’ customer base by around two million.
Run by Greg Jackson, Octopus Energy is now valued by investors at several billion pounds and its move to buy the Shell operations followed less than a year after it bought Bulb Energy – with its 1.6m customer base – which powered the supplier from fifth to third in the retailer rankings.
Octopus Energy did not immediately respond to comment.
More to follow.