DONG Energy Announces Acquisition of Shell UK Gas Direct

Danish company DONG Energy has announced that it has signed a Sale and Purchase Agreement with Shell Gas Direct for £30 million. Shell Gas Direct, a subsidiary of Royal Dutch Shell Plc, currently supplies about 2.5 billion cubic metres of natural gas annually, and consitututes 11 percent of the UK's business-to-business sales.

DONG will acquire 100 percent of the company's shares and expects that the sale will be completed within the coming months. 

Executive Vice President of DONG, Lars Clausen, says that the purchase will grant the company entry into the UK gas market. The acquired business will be a addition to the company's exisitng operations in the UK, including its wind farms, power station and current gas and exploration efforts there.

"The acquisition of Shell Gas Direct will provide us with a unique opportunity to enter the UK natural gas sales market" Mr. Clausen said. "The company has a considerable customer portfolio and an experienced sales force that I look forward to welcoming to DONG Energy."

The deal must be approved by the EU competition authorities before it can be completed. DONG say the deal will not impact on its existing financial outlook for 2011 or its expected investment level.