SSE and npower to no longer merge
The UK-based energy companies, SSE and npower, has announced that they will no longer be merging.
According to SSE, its board decided that “it is not now in the best interests of customers, employees or shareholders to proceed with the transaction.”
The energy suppliers have attributed the failure to reach a deal to the price cap introduced by the government and growing competition.
“This was a complex transaction with many moving parts,” stated Alistair Phillips-Davies, CEO of SSE.
“We closely monitored the impact of all developments and continually reviewed whether this remained the right deal to do for our customers, our employees and our shareholders.”
“Ultimately, we have now concluded that it is not. This was not an easy decision to make, but we believe it is the right one.”
“SSE Energy Services remains a profitable business with a strong track record, a customer-centric culture and an excellent team that has enabled it to be a market-leader for many years.”
“We will build on this while continuing with separation activity in preparation for its long-term future outside the SSE group.”
“We are now exploring all the available options with a view to delivering this future in the best possible way. In this, the interests of our customers, employees and shareholders remain paramount. In the meantime, we remain strongly committed to high standards of service for customers and delivery of our five-year dividend plan for shareholders.”
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