Scottish energy giant SSE bucked a stock market trend yesterday after the UK’s competition watchdog provisionally approved the merger of its retail arm with “Big Six” rival Npower.
Shares in FTSE 100 Index-listed SSE rose a fraction during an otherwise gloomy day in the City.
Consumer group Which? said it would be “watching closely” to make sure hard-pressed households do not suffer after the Competition and Markets Authority (CMA) said the move raised no competition concerns.
The plan is for the enlarged company to list on the London Stock Exchange, with SSE shareholders owning 65.6% and Npower parent Innogy 34.4%.
Perth-based SSE is the UK’s second biggest energy supplier and the merged group will serve about 11.5 million customers.
Centrica, Iberdrola (Scottish Power), E.On and EDF make up the remainder of the Big Six.
SSE chief executive Alistair Phillips-Davies said: “The scale and pace of change in the GB energy market continues to be significant and requires us to evolve to stay relevant, competitive and sustainable. The planned transaction presents a great opportunity to create a more agile, innovative and efficient company that really delivers for customers and the energy market as a whole.”
Martin Herrmann, chief operating officer, retail, Innogy, said: “The new organisation will combine the best from both companies to meet evolving customer expectations and address advancing market challenges.”
The CMA is due to publish its final report on the merger in October.