bp North America has agreed to acquire EDF Energy Services (EDF ES) in an effort to expand its presence in the US’ retail power and gas business.
EDF ES supplies power, natural gas and related services to commercial and industrial (C&I) customers across the US.
The business’ customer base includes retailers, universities, manufacturers, municipalities and power generators, but does not cover residential consumers.
The financial details of the deal have not been disclosed.
bp Americas chairman and president Dave Lawler said: “EDF ES is a leading retail power supplier in the US to C&I customers. We are excited to welcome the team to BP.
“This is exactly the type of high-calibre business that will help drive bp’s transformation, giving more customers the secure, affordable and lower carbon energy they want while creating value for our shareholders.”
The deal aims to help bp expand its energy solution offerings and other services directly to large end-user customers in new and existing markets.
It will also create opportunities for bp to deliver additional lower-carbon integrated energy solutions for C&I customers.
In addition, the transaction includes all of EDF ES’ retail operating capabilities.
bp America gas and power trading senior vice-president Orlando Alvarez said: “bp’s commitment to putting the customer first has helped make us the largest marketer of natural gas in North America for the last 20 years as well as a top power marketer in the US.
“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 decarbonising, managing energy spend and increasing reliability.”
The deal is expected to close by the end of this year subject to regulatory approvals being given.
In June this year, bp agreed to acquire a 40.5% stake and the operatorship of the Asian Renewable Energy Hub (AREH) in Pilbara, Western Australia.