Shell in exclusive talks to swoop on Post Office broadband arm

[TrueBlueTerrier]

https://news.sky.com/story/shell-in-exc ... m-12154235

The FTSE-100 oil giant has emerged as the preferred bidder for the Post Office division, Sky News understands.

Shell is in exclusive talks to buy the Post Office's broadband operations in a deal that would transform the scale of the FTSE-100 energy giant's presence in the UK communications market.

Sky News has learnt that Shell has emerged as the preferred bidder for the Post Office division in the last few days.

A deal, which is likely to take several weeks to finalise, would see the oil behemoth clinch a deal that is expected to cost it less than £100m.

TalkTalk and Sky, the immediate owner of Sky News, also expressed an interest in the Post Office business, which has about 500,000 customers.

Shell took control of the retail energy and broadband supplier First Utility in 2018, representing its first move into those domestic markets.

Shell Energy Retail - the new name of First Utility - has roughly 130,000 UK broadband customers, as well as 870,000 domestic energy accounts.

For the Post Office, the disposal would enable Nick Read, its chief executive, to refocus on its core operations of mail and parcels, banking, travel services and bill payments.

Mr Read is also exploring options for its insurance arm.

A source close to the Post Office said it would ensure that no postmaster is out of pocket as a result of the sale, with its telecoms arm accounting to just 0.3% of their total pay during the last financial year.

Shell and the Post Office declined to comment on Monday.