Shell PLC (NYSE: SHEL) inked a deal with Octopus Energy Group to sell its home energy businesses, Shell Energy Retail Limited (SERL) in the U.K. and Shell Energy Retail GmbH (SERG) in Germany, for an undisclosed amount.
Shell's home energy businesses offer domestic gas, power, and broadband services to around two million customers.
The transaction, effective September 1, is expected to close in Q4 FY23, subject to regulatory approval.
The acquisition is expected not to impact the existing home energy customers' tariffs, customer service, and offers, including continued access to 100% renewable power.
"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," said Steve Hill, Executive Vice-President, Shell Energy.
As a part of the deal, Shell and Octopus also inked a memorandum of understanding to explore a potential international partnership to boost the experience of EV charging customers (including Shell Recharge subscribers).
The companies also plan to explore possible joint promotions and brand activations. The collaboration is aligned with Shell's target to expand to around 200,000 public EV charging points by 2030.
As of Q2-end, Shell's net debt stood at $40.3 billion, with a gearing ratio of 17.3%.
Price Action: SHEL shares are trading higher by 0.85% at $62.62 on the last check Friday.