Oil and gas major Shell has agreed to sell the UK and German operations of Shell Energy Retail to Octopus Energy Group.

The financial terms of the transaction were not disclosed.

UK’s Shell Energy Retail Limited and Shell Energy Retail GmbH in Germany are engaged in supplying domestic gas, broadband and power services.

Operating under the Shell Energy brand, these businesses are said to cater to some two million customers.

Shell Energy executive vice-president Steve Hill said: “This agreement follows the announcement during our Capital Markets Day to divest our home energy retail business in Europe.

“To drive performance, discipline and simplification, we are prioritising countries, projects and routes to market where we can deliver the most value. We will work closely with Octopus to ensure a seamless transition and continued high standards of customer service.”

As part of the deal, Shell and Octopus also signed a memorandum of understanding (MoU) to look into the potential for a global partnership.

In addition to cooperation on out-of-home charging and other activities across the electric vehicle value chain, options for potential joint promotions and brand activations will be explored under the MoU.

The sale forms part of a strategic review, which was completed in June this year.

Other than the UK and German markets, Shell intends to exit its home energy retail business in the Netherlands.

Subject to regulatory approval, the transaction is expected to close by the end of 2023.

Last month, it was reported that Shell is closing in on the sale of its gas assets in the North Sea by selecting three bidders.

The energy giant also plans to sell its stake in several UK North Sea oil fields to focus on bigger and newer projects across the globe.