Shapps replaces Jacob Rees-Mogg after he resigned from the role on Tuesday (25 October) before Sunak arrived at No. 10 Downing Street.
Shapps, who was a firm supporter of Sunak to become the country’s 57th prime minister, was previously transport secretary under Boris Johnson before he was named home secretary by Liz Truss.
Via Twitter, Shapps said: "Delighted to become business secretary in Rishi Sunak’s administration with business, energy and industrial strategy to look after.
"I look forward to leading the department to fix our energy market and deliver growth and prosperity for the UK."
The move may come as a welcome one by some, after former Tory MP and podcaster Rory Stewart described Rees-Mogg as a "particularly comical figure" who has "changed jobs about every 12 months over the last four years."
