Utilities looking at tie-up
SSE in talks to merge operations with Npower
SSE admits to being in talks that could lead to creating a new business
Big six energy firm SSE has confirmed it is in talks with the German owner of Npower about a merger of their gas and electricity businesses in Britain.
SSE said in a short statement this afternoon that the board “has been in discussions” with Npower owner Innogy over a deal to create “a new independent energy supply company to which would be contributed: SSE’s household energy supply and services business in Great Britain; and Innogy’s household and business energy supply business in Great Britain.
SSE said negotiations are continuing and are well advanced but no final agreement has been taken and no binding deal agreed.
It said the the combined business would be listed and SSE would demerge its shares to its shareholders.
Npower, also one of Britain’s big six energy retailers, has been running at a loss and Innogy was last night rumoured to be looking for a sale or partnership.