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    EU Clears Shell's Entry into UK Retail

Summary

Shell's entry into UK energy retailing has been cleared by Brussels and is on schedule to complete this quarter.

by: Mark Smedley

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Natural Gas & LNG News, Europe, Corporate, Mergers & Acquisitions, Political, Regulation, News By Country, EU, Germany, United Kingdom

EU Clears Shell's Entry into UK Retail

Shell's planned takeover of First Utility, marking its first move to directly supply gas and power to households in Britain, has been cleared by the European Commission.

The Brussels-based commission said February 16 it had approved "the acquisition of Impello Limited by the Shell Petroleum Company, both of the UK. Impello is an independent energy supplier to household customers in the UK and Germany, active under the brand First Utility." It noted that the Shell group already has activities in trading and wholesale supply of electricity and gas, including in the UK and Germany."

The commission said the deal would raise no competition concerns because of the limited positions of the companies on the markets for the wholesale and retail supply of electricity, as well as gas in the UK and Germany.

Neither Shell nor Impallo have divulged the transaction value either when the deal was announced December 21 or since. Shell said two month ago it expected the deal to be completed "early in 2018." First Utility has a 3% share of the UK retail energy market. It's thought that Shell's acquisition may be part of its strategy to become involved in New Energies, such as supplying electric cars or in providing battery technology to households. Shell is already a long-established motor fuels retailer in both the UK and Germany.

"We can confirm that the European Commission has cleared Shell's purchase of First Utility Ltd; the deal remains on target for completion in early 2018," a Shell spokesperson told NGW.