SSE PLC (LON:SSE) has welcomed 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 £500m comprising £400m cash and £100m 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 £59m 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.