Shell Completes Acquisition Of Australian Retail Supplier, Building "One Stop Shop"
December 02,2019
Shell Energy Australia Pty Ltd (Shell) has completed its previously reported acquisition of ERM Power Limited (ERM), an Australian commercial and industrial electricity retailer.
Greg Joiner, the Vice President of Shell Energy in Australia, which to date has primarily focused on gas trading, will take on the role of Chief Executive Officer of ERM.
In the future the two businesses will be integrated and ERM rebranded as Shell Energy.
“ERM will become Shell’s core power platform in Australia and substantially accelerate our position in the Australian market,” Joiner said.
Maarten Wetselaar, Integrated Gas and New Energies Director, Royal Dutch Shell, said that, "Many customers want a single place they can go to for all their energy needs. This new addition to our power activities in Australia is helping to build that one-stop shop."
Wetselaar highlighted ERM Power's, "focus on innovation, people and, above all, customers[.]"
ERM Power’s businesses include rooftop solar and energy-efficient services, Wetselaar noted
Wetselaar cited Shell's other Australia activities as including building its power trading business, expanding sonnen home batteries, and planning a 120MW solar farm in Queensland.
Separately, Just Energy Group Inc. announced that it has closed its previously announced sale of Hudson Energy Supply UK Limited to Shell Energy Retail Limited.
"The successful sale of Hudson UK further advances our efforts to streamline the organization and concentrate on our higher-margin North American operations, while also improving our liquidity," said Scott Gahn, President and Chief Executive Officer of Just Energy. "We remain focused on our strategic review process, while also improving and optimizing our business through strict cost management, prudent investments, and a focus on signing high-quality customers that support improved profitability objectives."
Pursuant to the share purchase agreement, the aggregate amount of the closing consideration received by Just Energy was approximately £1.5 million (approximately C$2.8 million), following the closing adjustments. While the capacity market payments were reinstated in the UK in late October, any contingent consideration due to Just Energy will be paid following the determination of Hudson UK’s ultimate capacity market payment for the period up to June 30, 2019, which is expected to be determined within six months of closing.