SHELL Energy has taken the next step on their quest to become UK’s largest residential energy provider by acquiring Hudson Energy Supply UK Limited.
Hudson Energy supplies around 200,000 UK homes with gas and renewable energy through its residential trading arm, Green Star Energy, as well as holding gas and electricity supply contracts with around 2,000 industrial and commercial customers.
“As part of our ambition to build a significant UK retail energy business, this deal will take the number of Shell Energy Retail’s UK residential customers to just under 1 million and adds to Shell’s presence in the B2B market”, Colin Crooks, CEO of Shell Energy Retail, said.
Under the terms of the deal Hudson will continue to operate as a wholly-owned subsidiary of Shell on completion.
“Shell Energy Retail is the perfect partner for our customers. Our priority is to ensure they continue to receive a great deal and great service,” Paul Hellings, CEO of Hudson Energy, added.
“Our customers’ existing tariff terms will not change; they will continue to benefit from 100% renewable power at no extra cost, their Perks Rewards, and investment in reforestation and carbon offsetting initiatives that help to set us apart in the UK energy market.”
ICON’s Founder, Georgina Penfold, commented:
“This move is another example of consolidation in the non-domestic energy retail space and builds on Shell’s bold ambition to become the world’s biggest power company. At a time when many utilities continue to struggle with tough market conditions, we are watching with interest to see whether this impacts the options available to non-domestic energy consumers.”
The deal is subject to regulatory approvals and is expected to complete by the end of 2019.
Until completion, both companies will continue to operate independently.
The sale was publicised on 9 October.