Shell Energy Retail has bought Hudson Energy Supply, including its domestic retail arm Green Star Energy, for “up to £10.5 million”.
Hudson’s Canadian owners Just Energy made the announcement yesterday (8 October).
The company’s domestic retail arm Green Star is a renewable electricity supplier which supplies 200,000 UK customers. Hudson also provides green electricity to around 2,000 business customers.
As part of the agreement Just Energy will receive £2 million at closing and up to £8.5 million to be paid depending on whether the Capacity Market is reinstated.
Under the terms of the deal Hudson will operate as a wholly-owned subsidiary of Shell Energy until completion, which is expected by the end of this year.
In response to the deal Colin Crooks, chief executive of Shell Energy Retail, said: “As part of our ambition to build a significant UK retail energy business, this deal will take the number of Shell Energy Retail’s UK residential customers to just under 1 million and adds to Shell’s presence in the B2B market.
“Green Star Energy’s customers will enjoy continued security of supply with no change to their current tariff terms and conditions after completion.”
Paul Hellings, chief executive of Hudson Energy, said: “Shell Energy Retail is the perfect partner for our customers. Our priority is to ensure they continue to receive a great deal and great service.
“Our customers’ existing tariff terms will not change; they will continue to benefit from 100 per cent renewable power at no extra cost, their Perks Rewards, and investment in reforestation and carbon offsetting initiatives that help to set us apart in the UK energy market.”
Meanwhile Scott Gahn, president and chief executive of Just Energy, said the sale of the company’s UK operations is part of its strategy to concentrate on its higher-margin operations in North America.
“As well as refocusing our geographic footprint, we have undertaken an in-depth review of our operations and identified ways to improve our business by boosting efficiency and lowering costs”, he added.
A further statement is expected from Hudson later today.