Shell’s home energy and broadband division has emerged as the preferred bidder for the Post Office’s telecoms business.
Sky and TalkTalk has also been touted as potential suitors, but according to Sky News, the oil and gas giant is now in exclusive talks over a transaction that could be worth up to £100 million.
Post Office has decided to divest its broadband unit in order to focus on its core businesses including mail, banking and travel money. It is said that the company could also sell its insurance business in the near future.
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Post Office broadband
If the deal goes ahead, it will transform Shell’s retail presence. The company first entered the market through the 2018 acquisition of First Utility and rebranded the division as ‘Shell Energy’ as part of a bid to become a major player in home utilities.
Shell is believed to have around 87,000 energy customers but has steadily increased its broadband subscriber base to more than 100,000 through cross-selling activities.
The addition of Post Office’s 500,000 customers would be transformative in terms of fulfilling Shell's ambitions.
Shell Energy declined to comment, while Post Office has been contacted by TechRadar Pro for comment.
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Via Sky News