Ovo Vitality is reportedly planning to make a bid to purchase 1.4 million family power prospects from Shell’s UK provide enterprise because the oil firm prepares to depart the retail market.
Ovo is anticipated to place ahead a takeover provide that may swell its enterprise to five.4 million prospects, in keeping with Sky Information, as soon as once more making it the second-largest power provider within the UK market.
If it goes forward, the Shell takeover could be Ovo’s second current high-profile acquisition after it struck a deal in 2019 to take on 3.5 million SSE customers and have become the most important provider behind British Gasoline.
Ovo misplaced that No 2 place late final 12 months to Octopus Vitality after the latter agreed to buy Bulb, which had collapsed into administration a 12 months earlier. The deal took its buyer base to five million properties.
The Guardian understands that Shell has employed the monetary providers agency Lazard to supervise the sale of the enterprise, with Octopus Vitality additionally contemplating placing in a bid.
It comes after Shell determined in January to undertake a “strategic review” of the household energy supply enterprise, which it arrange lower than 5 years in the past with the acquisition of First Utility. That evaluation is anticipated to take “a variety of months” and has not but concluded.