BP North America has agreed to acquire EDF Energy Services (ES), the US business of French multinational electric utility company EDF, for an undisclosed sum.
Under the terms of the agreement, BP will purchase EDF ES’ entire retail operating business, expanding its retail power and gas business in the US.
Based in Houston, Texas, EDF ES is engaged in the supply of power, natural gas and related services to commercial and industrial (C&I) customers across the US.
It primarily serves public entities, including retailers, universities, manufacturers and producers, municipalities and power generators, excluding residential consumers.
The acquisition is expected to close by the end of the year, subject to regulatory approvals.
BP Americas 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.”
Through the acquisition, BP is enabled to expand its energy solutions and additional services offered to customers in new and existing markets.
It will benefit from EDF’s wide geographical reach and diverse C&I customers.
In addition, the acquisition would provide opportunities to deliver additional lower carbon integrated energy solutions for C&I customers.
The company, in partnership with its other businesses including BP Wind Energy, BP pulse, and BP Launchpad, will support the decarbonisation goals.
BP America 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.”