Shell has announced on Friday selling its home energy business in the UK and Germany to British energy supplier Octopus Energy Group. The deal, worth $50-100 million, also explores partnerships with the two companies over electric vehicle (EV) charging.

The acquisition will make Octopus the second-largest home energy supplier in Britain with around 6.5 million customers, second only to Centrica’s British Gas which has about 7.5 million retail customers.

Octopus Energy Group is a British energy supplier that has emerged as a significant player in the clean energy market. The company is known for its innovative and customer-centric approach.

The sale is expected to be completed in the fourth quarter of 2023, pending regulatory approval.

Revenues in the British energy retail sector have been under pressure over the past few years as companies have struggled with soaring wholesale costs and a cap on prices, they can charge customers imposed by regulator Ofgem.

“This agreement follows the announcement during our Capital Markets Day to divest our home energy retail business in Europe,” said Shell Executive Vice-President Steve Hill, noting that the company was focusing on projects and countries where it believed it could deliver the most value.

Shell Energy Retail Limited in the UK and Shell Energy Retail GmbH in Germany provide domestic gas, power, and broadband services to about two million customers and operate under the Shell Energy brand.

Shell and Octopus will also explore a potential international partnership in the EV charging sector as part of the agreement. This partnership would specifically focus on Shell Recharge subscribers.