Deal called off
SSE and Npower scrap plans for energy services merger
SSE sponsors the Hydro concert hall in Glasgow (pic: Terry Murden)
Gas and Electricty giants SSE and Npower have scrapped the planned merger of their energy services businesses.
Perth-based SSE said it was unable to reach agreement on “revised commercial terms” with Npower owner Innogy and will now consider other options for the division.
Alistair Phillips-Davies, chief executive of SSE, said: “This was a complex transaction with many moving parts.
“We closely monitored the impact of all developments and continually reviewed whether this remained the right deal to do for our customers, our employees and our shareholders. Ultimately, we have now concluded that it is not.
“This was not an easy decision to make, but we believe it is the right one.”
SSE said it “believes that SSE Energy Services will be best positioned to build on this strong performance in a future outside of the SSE group.
“With that in mind, SSE will continue to build on the significant work done to date to separate SSE Energy Services as an independent, self-sufficient entity within the group, in preparation for its future outside it.”
The company said: “SSE Energy Services is expected to be profitable and cash flow positive in 2018/19 and 2019/20 and continues to deliver strong performance for customers, across a wide range of measures.”