Shell has completed the acquisition of Australian supplier ERM Power, aiming to establish a “one-stop energy shop” in the country.
O&G major Shell confirmed its offer to acquire in the firm in August, announcing that it had entered into a scheme implementation deed that would see it acquire 100% of ERM’s share capital for around AU$2.45 per share.
That bid valued ERM at around AU$617 million (£338 million), and Shell announced late last week that it had completed the purchase.
Shell has identified Australia as one of its core markets for “emerging power”, it said, and ERM will become the company’s core power platform in the market.
Greg Joiner, VP of Shell Energy in Australia, will become chief executive at ERM Power and the business is to be rebranded as Shell Energy in the future, a similar move to the one enacted in the UK after Shell acquired First Utility.
In a post on social media platform LinkedIn, Shell’s integrated gas and new energies director Maarten Wetselaar said he was delighted by the deal, adding that it was the company’s intent to build a “one-stop energy shop” in Australia.
“At Shell, we aim to make electricity a significant business for us. This means being involved at almost every stage of the integrated power system, from generating electricity, to buying and selling it, storing it and supplying it directly to customers,” he wrote.
Wetselaar, meanwhile, also confirmed that Shell had completed its purchase of UK-facing C&I supplier Hudson Energy, bolstering its customer ranks by around 200,000.