OVO Energy allegedly plans to make a bid for Shell Energy‘s business with the intention of overtaking Octopus Energy to reclaim the second-largest spot in the domestic energy market.
Sky News cited sources claiming that the company would submit an indicative offer to meet Lazard’s deadline on Wednesday.
It is estimated that the potential acquisition could see OVO Energy’s customer base grow from four million to 5.4 million households.
In January, Shell said: “We have informed relevant staff of the start of a strategic review of our home energy retail businesses in the UK, the Netherlands and Germany. The review is in line with our Powering Progress strategy, which includes continually exploring options to maximise the value of our portfolio and address performance in tough market conditions.
“No decisions have yet been taken on the way forward and our priority remains to ensure our customers in those countries continue to receive a reliable and affordable energy supply and to provide support for customers who are struggling with the cost of energy and wider cost of living pressures.”
ELN has reached out to OVO Energy and Shell Energy for comment – OVO declined to comment.