Shell Energy to acquire online energy retailer Powershop Australia
Shell Energy Operations, a fully-owned subsidiary of Royal Dutch Shell, has agreed to acquire Powershop Australia, an online energy retailer.
The financial terms of the deal announced in late November 2021 were not disclosed.
The deal will be executed through the 100% acquisition of Meridian Energy Australia Group, the parent company of Powershop Australia by a consortium of Shell Energy Operations and Australian infrastructure investor and manager Infrastructure Capital Group (ICG).
While Shell Energy Operations will buy Powershop, and Infrastructure Capital Group will acquire the portfolio of renewable generation assets and development projects of Meridian Energy Australia.
Powershop Australia, which is an electricity and gas retailer, caters to 185,000 plus customers in the small business and residential markets. It provides electricity in Victoria, South Australia, New South Wales, and South-East Queensland, as well as supplies gas in Victoria
Tony Nunan — Shell Australia chairman said: “Shell has been in Australia for more than 120 years and has a proud history of providing Australians with the energy they need to power their lives. This acquisition will see Shell continuing to serve the energy needs of our customers – this time in their homes.”
Shell said that the acquisition of Powershop aligns with its Powering Progress strategy and goal to establish an integrated power business.
Powershop will become the residential power platform in Australia for Shell, thereby expanding the latter’s current position in the country as the largest power retailer serving industrial and commercial customers.
As part of the arrangement with Infrastructure Capital Group, Shell Energy will also purchase power purchase agreements (PPAs) for wind energy as well as signed offtake agreements with the former for the wind and hydropower assets of Meridian Energy Australia.
Elisabeth Brinton — Shell Executive Vice President of Renewables and Energy Solutions said: “Our aim is to become a leading provider of clean power-as-a-service and this acquisition broadens our customer portfolio in Australia to include households.
“Shell’s presence across the entirety of our changing energy system means we are well-placed to manage complexity for customers so that we deliver simple, cleaner energy solutions.”
The deal, which is subject to regulatory approvals, is anticipated to close in the first half of next year.