Shell puts retail energy arm up for sale

(Sharecast News) - Shell on Tuesday put its household energy supply business up for sale after poor returns in the UK, Germany and Netherlands. The oil and gas giant launched a review in January, and media reports stated that Ovo and Octopus Energy had launched bids for the unit.

"As we stated at the end of January 2023, we have been conducting a strategic review of our home energy retail businesses in the UK, the Netherlands and Germany," Shell said.

"That review has now concluded and as a consequence, we intend to exit those businesses. A sales process is already under way, with the intent to reach an agreement with a potential buyer in the coming months."

Shell Energy was launched in 2008 as First Utility, but bought by the oil major a decade later. It employs around 2,000 people in the UK and supplies energy to around 1.4 million homes. In addition to that around half a million households get their broadband from Shell Energy.

"We are committed to supporting both customers and staff and protecting customer interests during this period, and to ensuring a seamless transfer to a buyer capable of delivering on its obligations, including our intent to maximise employment.

"Neither our B2B wholesale and SME customer supply businesses under the Shell Energy brand, or our home energy retail businesses outside Europe, are in scope of this potential divestment."

Reporting by Frank Prenesti for Sharecast.com