Shell Moves Into U.K. Household Energy Market With First Utility Acquisition

12/21/17 10:15 AM EST

By Adam Clark

 

Royal Dutch Shell PLC (RDSA.LN) said Thursday that it has agreed to acquire U.K. household-energy and broadband provider First Utility Ltd. for an undisclosed price.

Shell said the acquisition will expand its energy-supply business from commercial and industrial customers into the residential sector.

First Utility serves around 825,000 homes in the U.K., with a 3% share of the domestic residential energy market, said Shell. First Utility's German subsidiary is also included in the deal, the company said.

Shell said it will continue to supply wholesale gas and electricity to energy retailers in the U.K. and Europe, including First Utility. Shell noted that a previous licensing agreement in 2015 allowed First Utility to operate in the German household-energy sector under the Shell brand.

Shell shares were up 27.50 pence, or 1.1%, at 2438 pence at 1453 GMT.

 

Write to Adam Clark at adam.clark@dowjones.com; @AdamDowJones

 

(END) Dow Jones Newswires

December 21, 2017 10:15 ET (15:15 GMT)

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