Commenting on the CMA's decision,
"We are very pleased that the CMA has cleared the proposed sale of SSE Energy Services to
"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
"Completion of the transaction will give
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
- 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
.
(C) 2019 M2 COMMUNICATIONS, source