Watchdog gives green light for Ovo Energy’s £500m SSE deal
The competition watchdog has given the green light to Ovo Energy’s £500m takeover of rival supplier SSE’s retail arm.
In a statement this morning the Competition and Markets Authority (CMA) said the deal, which will create the UK’s second-largest energy supplier, would not harm competition.
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In September Big Six energy supplier SSE agreed to sell its consumer business to Ovo for £400m in cash and £100m in loan notes.
The CMA opened an initial inquiry the following month, but today confirmed the deal will not be referred for an in-depth phase two investigation.
“We’re delighted with the CMA’s decision and look forward to bringing SSE into the Ovo family,” said Ovo founder and chief executive Stephen Fitzpatrick.
“There is a lot of work to be done, but we’re excited about the challenge ahead and the opportunity to help even more customers on the journey to zero carbon.”
The mega-merger marks a huge expansion for challenger firm Ovo, which is the UK’s largest independent supplier. Ovo will take over SSE’s 3.5m customers, in addition to roughly 8,000 employees.
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SSE has said it will do “all it can to ensure a smooth transition for customers and employees”.
The deal is expected to complete in January 2020.