SSEZY SSE PLC (PK)

   By Adria Calatayud 
 

The U.K.'s Competition and Markets Authority has provisionally cleared the proposed merger of SSE PLC's (SSE.LN) retail division with Innogy SE's (IGY.XE) Npower, the regulator said Thursday.

After an in-depth review, the CMA found the deal doesn't raise competition concerns, it said. The CMA said the merger isn't expected to have a significant effect on standard variable tariffs, or SVTs, the most common and expensive energy tariff.

The regulator was initially concerned that the merger could potentially impact SVTs. However, the investigation concluded that householders have a range of energy suppliers to choose from and SSE and Npower don't compete closely on SVT prices, the CMA said.

The CMA is now expected to publish its final report by Oct. 22.

"We look forward to continuing to engage with the CMA as it prepares its final report ahead of the statutory deadline in October," SSE's Chief Executive Alistair Phillips-Davies said in a separate statement.

SSE said it remains confident that the formation and listing of the new company is on track for completion by the end of the fiscal year ending March 31, 2019. The two companies set out the proposed merger in November.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

August 30, 2018 02:45 ET (06:45 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.