As you’ll no doubt have read, npower and SSE are planning to create a new company that will be listed on the London Stock Exchange.
The aim is to bring together the whole of the existing npower retail business (residential, small business and npower Business Solutions) and the SSE residential energy supply and home services business in Great Britain.
Market-leading service to continue
npower Business Solutions will be joining the new company but SSE’s large business division (along with SSE’s small business and residential business division in Ireland) will be retained by SSE and will not form part of the new company. So we will be taking with us into the merger the products, services and strong emphasis that we place on innovation.
In terms of ownership, SSE will distribute its share of the new company (65.6%) to its shareholders and not keep any ownership itself, while our current parent company, innogy, will own the remaining 34.4% stake.
Still a way to go…
Timing wise, the innogy SE supervisory board has already approved the proposed merger, and the shareholders of SSE plc will be asked to approve it by the end of July 2018.
Of course, clearance must also be obtained from the Competition and Markets Authority (CMA). This process is likely to take until the end of 2018 or early 2019.
Business as usual for now
For now, npower is carrying on functioning as normal, with no changes to any operational or financial matters.
Until approval is provided by the CMA, the two companies must remain entirely separate, fully competing with each other in the market and subject to the very strict rules on competition.
We believe there are strong reasons for the merger being approved, so are excited at the prospect of this new business. But in the unlikely event that it isn’t, npower will still be a wholly owned subsidiary of innogy SE.
We will keep you updated as matters progress. But if you have any questions, do please contact your Client Lead (for existing customers). Or contact us via nBS@npower.com.