innogy and SSE agree to merge npower with SSE’s domestic retail operations in Great Britain
- Creation of a major, independent British retail energy company
- Consistent with innogy’s 4P strategy
- Transaction subject to approvals from innogy Supervisory Board, SSE shareholders as well as competition and regulatory authorities
- Closing of the transaction expected in late 2018 / early 2019
innogy SE and SSE plc have agreed to merge innogy’s British retail business npower with SSE’s household energy and energy services business in Great Britain to form a major, independent British retail energy company. The combined retail company shall be listed on the premium segment of the London Stock Exchange. It will not be controlled by either innogy or SSE: innogy will hold a minority stake of 34.4 per cent in the combined retail company. SSE plans to demerge its stake of 65.6 per cent to its shareholders upon completion of the transaction. The transaction is still subject to the approval of the Supervisory Board of innogy and of SSE’s shareholders, as well as approval by competition and regulatory authorities.
Following the successful IPO of innogy and the recent adjustment of our corporate strategy, we are now redefining our involvement with the UK retail energy market at the right time. This is a logical step in our 4P strategy to review our market engagements if we aren’t able to reach a leading position in them. We have made great progress in restructuring npower over the past two years and have improved our performance considerably. However, when we look at the competitive landscape and the uncertain political environment for energy retailers in Great Britain, it is clear that npower would be better placed to offer value to our customers and our shareholders as part of a new company with the ability to succeed in the face of the challenges that lie ahead. With this in mind we are convinced that bringing npower together with SSE’s household energy and energy services business will combine unique skill sets into a major, independent British retail energy company that would achieve greater operating efficiencies and deliver better service to our customers. It would also deliver better on the future opportunities of the energy market in Great Britain.
SSE’s business retail (B2B) and its Ireland businesses would not be included in the combined retail company. Completion of the transaction and the listing of the new retail energy company are expected to occur in the last quarter of 2018 or the first quarter of 2019, provided all necessary approvals for the mergers are achieved by that time. Until the merger of npower and SSE’s domestic retail businesses becomes effective, the business operations of both npower and SSE will remain completely independent.
The services offered by the combined retail company shall not only include electricity and gas supply to domestic and business customers, but also a wide range of energy solutions including energy-related home services as well as business solutions.
Peter Terium on innogy’s further perspectives on the UK energy market:
innogy remains committed to the UK, as we have a strong UK renewables business which we intend to further expand, in particular through investments in wind projects. Furthermore, we want to expand our e-mobility business in the UK.