SSE and Innogy’s boards have agreed to merge their retail operations. The news comes as SSE posted half year results which showed further customer losses.
The deal is subject to shareholder and regulatory approvals but SSE said it aimed to complete the transaction by end of 2018 or early 2019. SSE will seek shareholder approval by 31 July 2018. Its shareholders will own around 66% of the merged entity.
Innogy will hold the remainder and will seek board approval by the end of this year. If SSE shareholders veto the deal, it may have to pay Innogy a £60m break fee.
As of end of September this year, the two firms had around 11.5m customers combined, although at current rates of attrition may dip below 11m by the time any deal is done.
Posting half year results, SSE lost 400,000 customers and reported profit before tax of £402.2m, down from £675m the prior year.