innogy SE and SSE plc have agreed to merge innogy’s British retail business npower with SSE’s household energy and energy services business in Great Britain to form an independent British retail energy company.
The combined retail company will be listed on the premium segment of the London Stock Exchange. It will not be controlled by either innogy or SSE: innogy will hold a minority stake of 34.4% in the combined retail company. SSE plans to demerge its stake of 65.6% to its shareholders upon completion of the transaction. The transaction is still subject to the approval of the Supervisory Board of innogy and of SSE’s shareholders, as well as approval by competition and regulatory authorities.
Peter Terium, CEO of innogy SE, said: ”Following the successful IPO of innogy and the recent adjustment of our corporate strategy, we are now redefining our involvement with the UK retail energy market at the right time. This is a logical step in our 4P strategy to review our market engagements if we aren’t able to reach a leading position in them.
“We have made great progress in restructuring npower over the past two years and have improved our performance considerably. However, when we look at the competitive landscape and the uncertain political environment for energy retailers in Great Britain, it is clear that npower would be better placed to offer value to our customers and our shareholders as part of a new company with the ability to succeed in the face of the challenges that lie ahead. With this in mind we are convinced that bringing npower together with SSE’s household energy and energy services business will combine unique skill sets into a major, independent British retail energy company that would achieve greater operating efficiencies and deliver better service to our customers. It would also deliver better on the future opportunities of the energy market in Great Britain.”
SSE’s business retail (B2B) and its Ireland businesses would not be included in the combined retail company. Completion of the transaction and the listing of the new retail energy company are expected to occur in the last quarter of 2018 or the first quarter of 2019, provided all necessary approvals for the mergers are achieved by that time.
The services offered by the combined retail company will include electricity and gas supply to domestic and business customers, and also a wide range of energy solutions including energy-related home services as well as business solutions.
Mr Terium added: “innogy remains committed to the UK, as we have a strong UK renewables business which we intend to further expand, in particular through investments in wind projects. Furthermore, we want to expand our e-mobility business in the