Octopus Energy Group has signed a deal with Impello Limited (Shell) to buy Shell Energy in the UK and Germany, subject to regulatory approval.
Should the deal go ahead, it is anticipated that Octopus Energy will complete the transaction in the fourth quarter of 2023 and bring the company’s household customers to over 6.5 million in the UK. In Germany, its customer base will grow to almost 300,000.
The companies did not disclose how much the transaction will cost.
In a statement made by Octopus, the company stated that there would be a “smooth transition and no disruption to customer energy supply, with all Shell energy and broadband customers to be contacted about the next steps following regulatory approval”.
As part of the agreement, Shell and Octopus Energy have also signed a memorandum of understanding (MoU) to explore a potential international partnership.
Via the MoU, the companies are planning to bring the “best possible experience” to their EV charging customers, including for Shell Recharge and Octopus Electroverse subscribers. Options will be explored for possible joint promotions, brand activations and other activities across the EV value chain.
Commenting on the deal, Greg Jackson, CEO and founder of Octopus Energy Group, said: “Following a stringent process, we are pleased to be acquiring Shell Energy Retail in the UK and Germany.
“Octopus has proven that it delivers game-changing service whilst innovating and investing relentlessly towards a cheaper cleaner energy system. Our commitment to customers is paramount and we will do whatever it takes to deliver the Octopus promise when we welcome these new customers too.”
Earlier this year, Octopus Energy secured 1.5 million customers following the acquisition of failed energy supplier Bulb, who had been put into Special Administration in November 2021, amid a swathe of supplier collapses as wholesale power prices surged.
