Innogy, SSE UK Retail Merger Plan Delayed

Germany’s Innogy SE and UK utility SSE said late November 8 that they had decided to enter into talks to adjust the terms of the planned merger of their UK energy retailing businesses announced a year ago.  

Innogy's retail chief, Martin Herrmann, said that whilst both firms still intend to go ahead with the transaction, "adverse developments in the UK retail market and regulatory interventions such as the price cap have had a significant impact on the outlook for the combined retail company."

Innogy and SSE aim to have the new UK retail joint venture listed on the London Stock Exchange and, last month, the UK Competition & Markets Authority provided its final clearance.

However, SSE said that the proposed joint venture's completion would now likely be delayed beyond 1Q 2019.

"Details of the required adjustments and their impact on the transaction structure as well as on the timing are still being analysed and discussed," said Innogy, which releases its 3Q results on November 14.

In November 2017 the two firms said that SSE would have a 65.6% stake and Innogy a 34.4% stake in the proposed joint venture, for which senior appointments have already been made. The latter is marketed in the UK under the 'npower' brand. Innogy is in the process of being acquired, for its subsequent break-up, by E.On which made its move on its smaller rival in March 2018.