10th Dec 2019 08:38
(Alliance News) - SSE PLC on Tuesday welcomed a UK regulatory decision not to refer Ovo Group Ltd's proposed SSE Energy Services acquisition on to the next stage.
The Competition & Markets Authority announced its decision not to proceed to phase 2 on Tuesday, meaning it will not conduct an in-depth assessment of the deal.
SSE Energy Services is FTSE 100-listed electricity utility SSE's household energy and services business in Great Britain and will be sold to Ovo for GBP400 million in cash plus GBP100 million worth of loan notes. SSE will use the funds to reduce its net debt.
Ovo was named as a potential buyer back in August and, once the deal is complete, will become one of the UK's largest energy suppliers. SSE said the deal is set to complete in January 2020.
SSE Chief Executive Alistair Phillips-Davies said: "This underlines our long-held belief that a dedicated, focused and independent retailer will ultimately best serve customers, employees and other stakeholders. With the required regulatory approvals now in place, we can make the final preparations for completion, expected around mid-January 2020.
"Completion of the transaction will give SSE even sharper focus to delivering the low carbon infrastructure needed to help the UK reach net zero emissions. We have a clear strategy around developing, operating and owning renewable energy and electricity network assets, along with growing businesses complementary to this core."
Shares in SSE were down 0.2% at 1,315.00 in London on Tuesday morning.
On Monday, SSE submitted its final business plan for the RIIO-T2 transmission price control period to the UK Office of Gas & Electricity Markets. SSE said it plans for a minimum total expenditure of GBP2.4 billion over the five-year price control period.
By Anna Farley; [email protected]
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