Shell PLC (LSE:SHEL, NYSE:SHEL) has confirmed its German, Dutch and British household energy supply businesses are up for sale and could be offloaded in the coming months after generating poor returns.
"[A] review has now concluded and as a consequence, we intend to exit those businesses,” Shell said in a statement.
“A sales process is already underway, with the intent to reach an agreement with a potential buyer in the coming months.”
British Gas, Octopus Energy and Ovo are understood to have previously bid on Shell’s UK retail energy arm, according to Reuters, which was created after the acquisition of First Utility in 2019.
Shell Energy has around 1.5mln customers in the UK and is anticipated to be worth between US$50mln and US$100mln, according to Reuters’ sources.
A strategic review of the business had been launched in January, with new Shell chief executive Wael Sawan citing “tough market conditions” when prompting the evaluation.
Shell’s business-to-business wholesale and small to medium-sized enterprise customer supply firms will not be sold, the oil giant confirmed, alongside its retail business outside of Europe.
Shell shares regained lost ground following the news, trading 0.25% lower at 2,279p come Tuesday afternoon.