Ovo Energy is planning a takeover of Shell’s UK gas and electricity business - a move that would allow the British retail energy supplier to reclaim the number two spot in the British supply market.
Ovo is expected to propose an indicative offer for Shell Energy Retail (SERL) UK operation, the Sky News report added, citing sources. Shell Energy Retail has about 1.4 million customers.
In January, Shell had said it was considering exiting its home energy retail businesses in Britain, the Netherlands and Germany in the wake of "tough market conditions".
This would put Ovo ahead of Octopus Energy, currently the UK's second-largest supplier, which has nearly 5 million household customers after its takeover of energy supplier Bulb.
It was unclear if Ovo would fund a takeover of the business from existing financial resources or whether it would need to raise new equity or debt, according to the Sky report.
The report said British Gas owner Centrica, the UK's biggest retail supplier, had also been exploring an offer for the SERL arm, citing industry executives.
Reports: Ovo plans gas business takeover
