British energy suppliers SSE, Npower announce tie-up
London, (MILLAT ONLINE):British energy supplier SSE and German-owned Npower said Wednesday they have agreed to merge their businesses that heat and light up millions of UK households.
SSE said in statement it would spin off its household energy and services business and combine it with Npower, the British arm of Germany’s Innogy.
The combined firm would be “a new independent UK incorporated company to be held by SSE shareholders and with minority participation by Innogy”, SSE said.
No financial details of the deal were provided.
But SSE said that, as of the end of September, the two businesses provided energy and related services to about 11.5 million UK customer accounts.
The announcement comes as Britain’s biggest energy suppliers face a regulatory shake-up after the government recently said that a price cap would be imposed on energy tariffs that did not currently provide customers with good value.
Completion of the deal, subject to shareholder and regulatory approvals, is expected by between late next year and early 2019, SSE said.