Terms of the proposed transaction to combine innogy’s and SSE’s retail businesses in Great Britain require adjustments
Adverse market developments and regulatory interventions impacting proposed combined retail company
Both parties still pursuing the objective to combine retail businesses in Great Britain
innogy SE and SSE plc have decided to enter into negotiations on adjusting the terms of the planned transaction to combine innogy’s British retail business with SSE’s household energy and energy services business in Great Britain as agreed in November 2017.
Martin Herrmann, COO Retail of innogy SE, explained: “The planned merger of our subsidiary npower with SSE’s British retail energy business is a complex transaction. Adverse developments in the UK retail market and regulatory interventions such as the price cap have had a significant impact on the outlook for the combined retail company. Both innogy and SSE continue to see the benefits of a combination of the two businesses. Together with SSE we have decided to enter into negotiations on adjustments of the terms of the agreement dated November 2017 including potential additional direct or indirect financial contributions by each party.”
Both innogy and SSE currently still pursue the objective to combine their respective businesses and to enable the listing of the new company on the London Stock Exchange. In October 2018, the UK Competition & Markets Authority provided final clearance for the planned merger.
The details of the required adjustments and their impact on the transaction structure as well as on the timing are still being analysed and discussed.