SSE and Ovo have agreed a deal where the former challenger supplier will acquire SSE’s domestic customer book for £400m in cash and £100m in loan notes.
Subject to clearance by the Competition and Markets Authority, the deal would make Ovo the second largest of the ‘big six’ UK suppliers, though an anticipated Eon-Npower amalgamation could very soon make a big five.
SSE confirmed Ovo talks last month. The deal is expected to close late this year or early next, with a hard stop of 30 May. SSE has been seeking buyers since proposals for a combined SSE-Npower retail entity collapsed.
All 8,000 SSE energy services staff will transfer to Ovo, said SSE.
Ovo, along with sister company Kaluza, plans to take a smarter approach to energy retail, creating vast virtual power plants from households and vehicles.
The firm recently received major investment from Mitsubishi Corporation in order to realise that vision.
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