(Alliance News) - Shell PLC on Friday said it agreed to sell its home energy businesses in the UK and Germany via its 100%-owned subsidiary Impello Ltd to Octopus Energy Group.
London-based oil major Shell did not disclose fees for the sales of Shell Energy Retail Ltd in the UK and Shell Energy Retail Gmbh in Germany, but said the disposals are expected to complete in the fourth quarter, subject to regulatory approval.
Octopus is an energy retail company which provides energy solutions to residential customers and operates in 15 countries, Shell said.
Shell said the businesses provide domestic gas, power, and broadband services to around 2 million customers and operate under the Shell Energy brand.
Tariffs and offers will remain unchanged for all existing home energy customers, including continued access to 100% renewable power, Shell said, while noting customer will not be interrupted.
Shell added, following regulatory approval and deal completion, both disposed companies will "ensure a seamless transfer of the businesses and eventually brand from Shell Energy to Octopus".
Shell Energy Executive Vice President Steve Hill commented: "This agreement follows the announcement during our capital markets day to divest our home energy retail business in Europe.
"To drive performance, discipline and simplification, we are prioritising countries, projects, and routes to market where we can deliver the most value. We will work closely with Octopus to ensure a seamless transition and continued high standards of customer service."
As part of the agreement, Shell said it has also signed an accord with Octopus over a potential international partnership to "bring the best possible experience to their [electric vehicle] charging customers, including Shell Recharge subscribers".
Options will be explored for possible joint promotions and brand activations, Shell said, alongside co-operation on out-of-home charging and other activities across the EV value chain.
Shell claimed it was already a "leading" EV charging provider with a "global charging network set to expand to around 200,000 public charging points by 2030".
Shares in Shell were up 1.7% to 2,452.50 pence each in London on Friday afternoon.
By Greg Rosenvinge, Alliance News reporter
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