Power merger cleared
Competition watchdog clears Ovo to acquire SSE Energy Services
Switched on: a lengthy probe has been avoided
The Competition and Markets Authority has decided not to refer the acquisition by OVO Group of SSE Energy Services Group.
In September Ovo announced the £500m deal which is scheduled to create the UK’s second largest energy supplier.
The challenger supplier, which was created 10 years ago, is already the largest independent energy supplier with 1.5 million customers and about 2,000 employees.
SSE Energy Services is the third-largest supplier in the GB energy market, supplying energy and related services to around 3.5 million household customers across GB. As well as electricity and gas, the business provides telephone, broadband, metering, boiler installation and maintenance services.
SSE’s customers and 8,000 staff were due to transfer to the new owner by the end of this year or early in 2020.
Clearance for the deal not only projects Ovo into the top rank of Britain’s energy companies, it also puts the company on a potential collision course with Labour which has wants to renationalise the big six energy providers if it forms a government this week.