The merger between innogy’s npower and SSE’s retail business requires adjustments.
The firms have decided to enter into negotiations to change the terms of the planned transaction, as a result of adverse market developments and regulatory interventions they think are likely to impact the creation of the combined retail company.
Both innogy and SSE will still pursue the objective to combine their respective businesses and enable the listing of the new company on the London Stock Exchange.
In October 2018, the UK Competition & Markets Authority provided final clearance for the planned merger.
Martin Herrmann, Chief Operating Officer Retail of innogy, said: “The planned merger of our subsidiary npower with SSE’s British retail energy business is a complex 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. Both innogy and SSE continue to see the benefits of a combination of the two businesses.”