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.
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.