SSE PLC Statement re Clearance of SSE Energy Services Sale
December 10 2019 - 2:45AM
Dow Jones News
TIDMSSE
RNS Number : 3255W
SSE PLC
10 December 2019
SSE COMMENTS ON CMA'S CLEARANCE OF THE PROPOSED SALE OF SSE
ENERGY SERVICES TO OVO GROUP
10 December 2019
SSE plc welcomes the Competition and Markets Authority's
decision to clear the proposed sale of SSE Energy Services, SSE's
household energy and services business in GB, to OVO Group.
Commenting on the CMA's decision, Alistair Phillips-Davies,
Chief Executive of SSE plc, said:
"We are very pleased that the CMA has cleared the proposed sale
of SSE Energy Services to OVO Group."
"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 plc 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."
Notes to editors
- The CMA decision
https://www.gov.uk/cma-cases/ovo-sse-retail-merger-inquiry to
provide unconditional clearance confirms that the transaction does
not result in a substantial lessening of competition and therefore
will not be referred for further investigation.
- On completion, the net cash proceeds of this transaction will
be used to reduce SSE's net debt. The agreement with OVO reflects
an enterprise value for SSE Energy Services of GBP500m comprising
GBP400m cash and GBP100m in loan notes. As stated when the
transaction was announced on 13 September, cash proceeds received
on completion of the transaction will reflect a deduction of GBP59m
reflecting debt-like items and the impact of the operation of the
'locked box mechanism' which set a date for the transfer of
economic interest of 30 June 2019.
- This transaction is another stepping stone towards the
execution of SSE's strategy, leaving a more focused group able to
specialise in the low-carbon infrastructure needed now and in the
future. SSE will also continue to supply energy to business
customers in GB and to business and household customers in Northern
Ireland and Ireland.
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END
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December 10, 2019 02:30 ET (07:30 GMT)
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