BP to acquire retail power and gas provider as it shifts into broader energy market

Dive Brief:

BP has agreed to acquire retail power and gas provider EDF Energy Services for an undisclosed amount. The deal is expected to close by the end of this year, subject to regulatory approvals, according to a BP news release.
The deal, which will let BP increase its capacity for lower carbon energy solutions, is the next step in the company’s goal to become an integrated energy company, BP said in the announcement.
BP’s announcement to move into the broader energy market coincides with its re-entry into fully owned and operated convenience stores in the U.S., highlighted by its acquisition of Thornton’s in 2021 and expansion of its Ampm brand earlier this summer.

Dive Insight:

As part of the agreement, BP will obtain EDF’s full retail operating capabilities while EDF integrates with other BP businesses that support decarbonization goals, such as BP Wind Energy, BP pulse and BP Launchpad.

The acquisition will allow BP to reach new customers, specifically those in the commercial and industrial sectors, which is part of EDF’s core business. EDF’s customers are primarily large corporations and public entities, including retailers, universities, manufacturers and producers, municipalities and power generators. The company does not supply residential consumers.

“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 decarbonizing, managing energy spend and increasing reliability,” said Orlando Alvarez, BP’s senior vice president of gas and power trading for Americas.

It’s unclear at this point how BP’s mission to become an integrated energy company will coexist with its re-entry into the U.S. c-store business, but the company appears to be all-in on both fronts.

After selling about 700 of its company-operated c-stores in 2007, BP took full ownership of Midwest chain Thornton’s in August 2021, including about 200 c-stores in Kentucky, Illinois, Indiana, Ohio, Tennessee and Florida. Earlier this summer, BP brought its Ampm c-store brand to the Bronx, New York City — its first store on the East Coast, with three additional locations scheduled for that area.

At the time of the Ampm expansion, Dave Lawler, chairman and president of BP America, said convenience will play a huge role in BP’s integrated strategy moving forward.