Ovo Energy, the UK's third-largest energy company, is planning to take over the domestic gas and electricity business of British-Dutch oil company Shell, Sky News reported on Wednesday, citing sources
MOSCOW (Pakistan Point News / Sputnik - 29th March, 2023) Ovo Energy, the UK's third-largest energy company, is planning to take over the domestic gas and electricity business of British-Dutch oil company Shell, Sky News reported on Wednesday, citing sources.
Ovo Energy intends to make an indicative offer to acquire the business of Shell Energy Retail Ltd (SERL) in the UK, which has 1.4 million customers, the sources said.
If the deal is successful, Ovo Energy's customer base will increase to 5.4 million, making it the UK's second-largest energy company ahead of Octopus Energy, the broadcaster added.
UK-based energy company Centrica, the owner of British Gas, is also considering a bid to acquire SERL in the UK, but such a decision would be controversial as it would significantly increase the market share of the industry's largest player, the report said.
It is not yet clear whether the acquisition of Shell's UK business will be financed from Ovo Energy's existing financial resources or whether it would require raising new equity or debt.
Shell produces, refines and markets hydrocarbons in more than 70 countries worldwide. Its headquarters are in The Hague.
