UPDATE: SSE and innogy's British retail business nPower have today (8 November) confirmed that, subject to Competitions and Markets Authority (CMA) approval, the two are to merge to create "a major new independent competitor in the energy and home services market".
If approved SSE chief executive Alistair Phillips-Davies, who confirmed the news via Twitter, has said the new company will be listed on the London Stock Exchange in late 2018.
There will be more to follow...
Power companies SSE and innogy have today confirmed they are in talks to create a new independent supply company.
In a statement to the market this afternoon (7 November), SSE said the new company would see SSE’s domestic supply and services business in Great Britain combine with innogy’s GB-facing household and business energy supply division.
SSE has said the discussions are “well-advanced” and continuing, however no final decisions have been reached and no binding agreements entered into.
It too said that any merging of divisions would be subject to regulatory and board approvals. Any combined business would be listed and SSE would demerge its shares to its shareholders.
Any deal would likely have significant repercussions on the UK’s already competitive energy supply market. As of July this year SSE had around 7.7 million customers which, if combined with the 5.1 million currently signed up to innogy’s GB-facing brand, would see the entity rival British Gas for customer numbers.
Rumours had abounded earlier this week that innogy was looking to either sell its npower division or combine it with a local rival following a period of struggle at the business. Innogy had consistently bemoaned the UK’s competitive energy supply market in recent results disclosures, instead focusing its efforts on a new strategy.