Shell is selling its home energy business, which has two million customers in the UK and Germany, to Octopus Energy.

The deal is subject to regulatory approval and is expected to be completed in the last three months of 2023.

Financial details were not immediately disclosed but sources have previously estimated the value of the deal at $50-100 million.

Shell said the businesses provide domestic gas, power, and broadband services and as part of the deal  the two companies will explore a partnership on EV charging.

The switch will mean Octopus will have nearly 6.5 million household customers in the UK.

Octopus has told Shell Energy customers to “sit tight for now” and has said there will be no disruption to energy supply during the takeover.

Customer credit balances will be protected and will be transferred automatically to Octopus, along with existing direct debits.

Shell said in June that it was looking for a buyer for the business.

Octopus recently completed the transfer of 1.5 million Bulb customers in just six months.

Greg Jackson, CEO and founder of Octopus Energy Group, said: “Following a stringent process, we are pleased to be acquiring Shell Energy Retail in the UK and Germany.

“Octopus has proven that it delivers game-changing service whilst innovating and investing relentlessly towards a cheaper cleaner energy system. Our commitment to customers is paramount and we will do whatever it takes to deliver the Octopus promise when we welcome these new customers too.”

Natalie Mathie, energy expert at Uswitch.com, said: “We’ve known that Shell Energy has been planning to exit the UK retail energy market for a while, so it will be good for customers to have more certainty about what might happen next.

“Despite today’s announcement, it could take some time until the deal is approved and completed, although Shell Energy believes it could happen later this year. Until any takeover is done and dusted, the business will operate as normal. Customers can be reassured that whatever happens, their credit balances will be protected and no action is required from them.”