SSE is expected to make more than £100m of profit this year (Image via: Walesonline.co.uk)

SSE Wants to Sell Its Retail Operations to OVO

Kirana Chandra Mumpuni Budiana
Market & Investment
New Investment
Aug 11, 2019
3992
The UK’s energy company SSE announced that the talk with OVO about the sale of its energy retail arm has been going for months. It’s still not clear whether the deal will be achieved or not. However, the discussion is expected to be agreed in outline on the upcoming weeks. If the deal can be closed, it will add 5.7 million customer accounts and approximately 9,000 employees from SSE to OVO’s business.

Eight months ago, SSE stated that the company was looking for alternative transaction for its energy supply business. The alternative needs to be found to replace the SSE’s failed deal with energy group Innogy SE. After the industry regulator proposed a cap on consumer bills, both companies were failed to merge their British retail operations. Ever since that, SSE has been considering some ways, including demerging the division, gaining a premium or standard listing on the London Stock Exchange, and outright sale. The company tried to approach TalkTalk, the broadband supplier, but the discussion didn’t progress.

The proposed deal is an effort from SSE's chief executive, Alistair Phillips-Davies, who has promised to create the disposal of the retail business. It will help SSE to get out from the challenged UK energy retail market. On the other hand, OVO’s power becomes bigger. OVO’s chief executive, Stephen Fitzpatrick, already known as an innovative thinker about the energy industry’s future. The company recently launched a campaign to help the UK achieve net zero carbon emissions by 2050. The growth of its business shouldn’t be a problem while maintaining the optimal customer service.

Source: https://news.sky.com/story/ovo-energy-lines-up-audacious-sse-retail-deal-11782034

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