CMA Provisionally Clears SSE-Npower Merger After Review
August 30 2018 - 3:00AM
Dow Jones News
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)
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