8th May 2018 10:29
LONDON (Alliance News) - The UK Competition & Markets Authority on Tuesday said it has referred the merger of SSE PLC's retail arm and Innogy SE-owned Npower to a phase two investigation.
The move comes, the regulator said, after the two parties failed to come up with adequate measures to address concerns brought up in the phase one investigation.
In late April, the CMA raised concerns the merger could potentially lead to higher prices for billpayers. The two parties had until Thursday last week to offer potential remedies for these concerns.
The CMA said Tuesday the deadline for the final report is October 22.
In November, SSE and Npower announced the merger of SSE's household supply and service with that of Npower, owned by German firm innogy, which was set to create a major float on the London Stock Exchange, with the enlarged and independent business looking to take a premium listing on the Main Market.
There was no comment as of yet from SSE on Tuesday morning. Shares were down 0.5% at 1,389.00 pence each.
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