The businesses serve approximately two million customers with domestic gas, power and broadband services under the Shell Energy brand.
The acquisition will expand Octopus Energy’s retail supply division to encompass 6.5 million customers.
With this agreement, Octopus Energy has become the second-largest energy supplier in the UK.
The transaction, effective from 1st September is expected to conclude in the fourth quarter of 2023, pending regulatory approval.
A few days ago, Energy Live News reported that Octopus Energy was on the verge of finalising an agreement to acquire Shell Energy’s substantial household energy customer base.
Greg Jackson, Chief Executive Officer and Founder of Octopus Energy Group, commented: “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.”
Steve Hill, Executive Vice-President at Shell Energy said: “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.”
Octopus has advised Shell Energy Retail customers to remain patient for the time being.
Since the acquisition is anticipated to conclude in the fourth quarter of 2023, customers will receive communication at that point in time.