UK’s Octopus Energy to acquire sister renewables company

British energy supplier Octopus Energy Group said on Friday it would acquire its sister company and clean energy investor Octopus Renewables, making it one of the biggest renewables operators and investors in Europe.

Octopus Energy Group did not give a value for the deal, but said it would manage Octopus Renewables’ European portfolio of assets, worth 3.4 billion pounds ($4.7 billion), under a new business arm called Octopus Energy Generation.

Octopus Energy Group is Britain’s fifth largest energy supplier and was launched in 2016. Its domestic energy arm has 2 million customers. In December last year, it was valued at more than $2 bilion.

Octopus Renewables’ portfolio has more than 300 clean energy assets with a combined capacity of 2.8 gigawatts across six countries and last year generated enough energy to power over 1.2 million homes.

By 2027, Octopus Energy said it planned to generate enough energy to power over 50 million homes across the world.

“This move will allow us to create a business that is unrivalled on the global stage,” said Greg Jackson, chief executive and founder of Octopus Energy Group.

“By combining our tech and consumer-led approach with the fund management expertise of Octopus Renewables, we can change the entire energy lifecycle, make every green electron matter, and deliver the green energy transition faster and cheaper for everyone,” he added.

The deal is subject to regulatory approval and expected to be finalised in June.

($1 = 0.7271 pounds)