CMA Clears Merger Between SSE and Npower to Proceed

By Oliver Griffin

The U.K.'s monopoly watchdog said Wednesday that the proposed merger between SSE PLC's (SSEZY) household-energy and services business and Npower can now proceed.

The Competition and Markets Authority said it had examined concerns around how the merger would affect so-called standard variable tariff prices, but found after an investigation that SSE and Npower--which is owned by Innogy SE (IGY.XE)--aren't close rivals on these tariffs.

According to the CMA, the number of people switching energy provider in the U.K. is the highest in a decade and the proportion of standard variable tariffs has fallen. Customers usually switch to a cheaper type of tariff, the CMA said.

SSE Chief Executive Alistair Phillips-Davies said the company welcomed the decision by the CMA. "We are very pleased that the final report of the CMA's investigation confirms its provisional findings that the proposed merger of SSE Energy Services and Npower does not raise any competition concerns," he said.

Write to Oliver Griffin at [e-mail]; @OliGGriffin

(END) Dow Jones Newswires

October 10, 2018 02:31 ET (06:31 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.