Dive Brief:
- BP has agreed to acquire retail power and gas provider EDF Energy Services for an undisclosed amount. The deal is expected to close by the end of this year, subject to regulatory approvals, according to a Sept. 12 BP news release.
- The deal, which will let BP increase its capacity for lower carbon energy solutions, is the next step in the company’s goal to become an integrated energy company, BP said in the announcement.
- BP’s announcement to move into the broader energy market coincides with its re-entry into fully owned and operated convenience stores in the U.S., highlighted by its acquisition of Thornton’s in 2021 and expansion of its Ampm brand earlier this summer.
Dive Insight:
As part of the agreement, BP will obtain EDF’s full retail operating capabilities while EDF integrates with other BP businesses that support decarbonization goals, such as BP Wind Energy, BP pulse and BP Launchpad.
The acquisition will allow BP to reach new customers, specifically those in the commercial and industrial sectors, which is part of EDF’s core business. EDF’s customers are primarily large corporations and public entities, including retailers, universities, manufacturers and producers, municipalities and power generators. The company does not supply residential consumers.
“This acquisition will give customers access to new opportunities across the energy value chain and allow BP to provide integrated solutions that assist them in decarbonizing, managing energy spend, and increasing reliability,” said Orlando Alvarez, BP’s senior vice president of gas and power trading for Americas.
It’s unclear at this point how BP’s mission to become an integrated energy company will coexist with its re-entry into the U.S. c-store business, but the company appears to be all-in on both fronts.
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