Oil and gas company Shell is buying EV charging operator Volta for $169 million through a subsidiary. The settlement, which the companies expect to complete in the first half of this year, will cost 86 cents per share; that is about 18 percent more than Volta’s closing price on Tuesday.
Volta’s board of directors unanimously approved the treaty, but it still needs approval from shareholders. Shell will provide credit to Volta to help complete the process.
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“While the EV infrastructure market opportunity is potentially enormous, it is difficult for Volta to continue independently in strong market conditions and with ongoing capital constraints. Both Volta and Shell are committed to meeting customers’ changing needs,” said Vince Cubbage, Volta discontinuous CEO. “It has proven capability, and this acquisition will bring those capabilities to the fore to provide the options needed as more drivers opt for electric.”
Volta has more than 3,000 charging stations in the US and a small number of charging stations in Europe, mostly in grocery stores and shopping malls.
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While it may seem odd for an oil company to buy an electric vehicle charging network, it’s not the first time Shell has done it. They had also acquired UK network Ubitricity for an undisclosed sum in 2021. Last year, Hertz and BP announced plans to build a charging network in the US.
