The European division of Shell will buy First Utility for an undisclosed amount, providing the UK and Germany’s domestic energy supply market with access to clean power and electric vehicles.
This landmark deal was formed after the supplier and Shell reached a four-year partnership. First Utility also deals with Shell brands in Germany.
First Utility co-founder Darren Braham said the two started discussions on potential acquisitions three months ago and said the deal is expected to close by the end of February.
He said: “First Utility’s customer base helps to combine Shell’s investment in EV charging and connected homes through the new energy business and makes some very interesting suggestions to target six major customers.
First Utilities is the largest of a new breed of energy providers that has emerged in recent years to challenge the entrenched dominance of the Big Six.
He grew up with 825,000 supplies of peripherals and light and gas supplies around the country, and also moved into broadband.
Traditional energy providers have lost thousands of new energy competitors to their customers. After the government’s imminent price ceiling, they also face severe economic pressure.
The deal is expected to free Shell’s ambitions to meet the growing demand for clean energy and to play a leading role in the rollout of electric vehicle charging, posing a threat to its traditional position as a traditional diesel and petrol supplier to internal combustion engines.
Mark Gainsborough, head of Shell’s new energy unit, said the innovation unit will double its investment to $ 2 billion (￡ 1.5 billion) next year to deepen its presence in the growing power market.
He told The Telegraph: “The biggest growth in the energy market over the next decade will be electricity.” It’s a growing market, and it’s a big one. Consumers have more control over their homes’ energy through digital devices, and the growth of electric vehicles will bring more new opportunities. This is an exciting growth market and is undoubtedly very competitive. ”
Earlier this year, Shell was also preparing to open a report on its promotion of clean cars in the capital next year next year, the country’s first “oil-free” service.
The small hell also plans to launch a high-speed electric car charging station throughout the 400 UK service stations, allowing the driver’s own electric car battery up to 80pc to charge in 30 minutes.
Energy sources have said the deal may start a mass acquisition in the retail energy market, a market that has matured after small vendors enter the market steadily.
As the number of “smart” home service offerings booms, the demand for the energy market in the energy market continues to grow, creating a market for home networking solutions.
Other companies said they have expressed strong interest in the energy market, including large telecom companies, financial service providers and technology providers keen to gain a foothold in the “smart home” market.