Renewable energy company Octopus Energy will take almost two million more customers after agreeing to buy Shell Energy in the UK and Germany.
By acquiring Shell Energy in the UK and Germany, Octopus Energy will become the former’s second-largest domestic energy supplier, ahead of companies like Eon and Scottish Power, and behind only British Gas.
This is not the first major energy company acquisition for Octopus — in 2018, the company took on 90,000 new customers when Iresa ceased trading, and 1.5 million customers in 2021 when Bulb entered special administration. Following the acquisition of Bulb Energy, Octopus transferred the 1.5 million customers in just six months – an industry record – after which it topped Citizens’ Advice’s star ratings and were named Which?’s prestigious Recommended Energy Supplier for the 6th year running.
Octopus Energy continues to expand in European energy markets
The acquisition will have a significant impact on Octopus, as it will add 1.4 million household energy customers and 500,000 broadband customers to its existing customer base. This move will expand Octopus' overall customer count to nearly 6.5 million in the UK and 300,000 in Germany.
Greg Jackson, CEO and founder of Octopus Energy Group, has been identified by Energy Digital as a trailblazer in the industry. He comments: “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.”
While specific financial details of the transaction remain undisclosed, industry estimates suggest that its value could reach as high as US$100m.
This strategic acquisition by Octopus follows a review by Shell of its home energy retail operations in the UK, Germany and the Netherlands earlier this year, which led to Shell's decision to exit these markets, prompting the initiation of a sales process to identify a suitable buyer.
The deal is expected to be completed in the fourth quarter of 2023 following the necessary regulatory approval.
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