innogy welcomes CMA provisional clearance for new British retail energy company
- No competition concerns on planned merger of npower and SSE’s British retail business
- Plans to set up new British energy supply and services company fully on track
- Completion of the transaction expected for end of 2018 or beginning of 2019
innogy SE welcomes today’s provisional clearance by the UK Competition & Markets Authority (CMA) for the creation of a new, independent British energy supply and services company, through the anticipated merger of innogy’s subsidiary npower with SSE’s household energy and energy services business. The CMA’s provisional findings state that the new company is not expected to result in a substantial lessening of competition in the United Kingdom. innogy and SSE will continue to work with the CMA for the rest of the review process, including through the final round of stakeholder consultation.
Preparations for the new British retail energy company are progressing on schedule and the parties have achieved important milestones in recent months: SSE’s shareholders approved the transaction in July and the designated CEO (Katie Bickerstaffe) and designated CFO (Gordon Boyd) are now in place. The designated Executive Committee has also now been appointed and preparation is underway for the formation and listing of the new company, subject to necessary legal restrictions.
“Our plans for a new British retail energy company are clearly on schedule and today’s announcement, that the UK Competition and Markets Authority has given provisional clearance to the planned merger, is another important milestone. We believe that the new organisation will combine the best from both companies to meet evolving customer expectations and address advancing market challenges.”
The new combined retail company will 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 will demerge its stake of 65.6 per cent to its shareholders upon completion of the transaction. Subject to final approval by the CMA and relevant regulatory bodies, 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.
This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialisation of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.