Shell buys EV charging company Volta from Volta for $169 Million

Oil and gas company Is it possible to buy an electric vehicle charging operator? A subsidiary was purchased for $169 Million. The deal is expected to close in the first quarter of the year and will cost 86 cents per share. This is 18 percent more than Volta’s closing price Tuesday.

Volta’s board approved the deal unanimously. However, it still requires shareholders’ approval. It is subject to regulatory approval as well as other closing requirements. Volta will be provided loans by Shell to help it through the closing. Volta had $15.6 Million in cash and cash equivalents at the end 2021, as opposed to $262.2 Million at the end.

“The potential EV infrastructure opportunity is enormous, but Volta’s capacity to capture it in its own right, in challenging market conditions, was limited,” Volta interim Chief Executive Officer Vince Cubbage . “Both Volta & Shell have demonstrated their ability to respond to changing customer needs, and this acquisition will bring those experiences together to offer the options that are required as more drivers opt for electric vehicles.

The company maintains more than 3000 charging stations in the US and Europe. . Its DC fast-charging stations were available for several years. Advertising and sponsorships help to pay the costs. It is not a good idea. Last year, it made its DC fast chargers a premium model. Volta still has more than 2,000 L2 chargers. . The companies stated that there will not be any immediate changes in the driver experience after the deal is closed.

Although it might seem strange that an oil company has bought an EV charging system, it’s not the first. Ubitricity, a UK network, was purchased by Shell. For an undisclosed amount. Hertz and BP were both acquired last year. How to establish a charging network in America.