Battle of the Green Energy Suppliers as Good Energy rejects hinted at £56.6 million Ecotricity takeover bid

Ecotricity has set its sights on a full takeover of its green energy rival, Good Energy but its latest indicative bid was unanimously rejected by the Good Energy board.

What’s happening?

Inadequate offer

Good Energy released a statement on the London Stock Exchange earlier in the week and described the latest offer as inadequate stating that it believes the offer ‘fundamentally undervalues the group and fails to recognise the intrinsic value of the group’s shares’. It also said that the current offer means that its shareholders were not offered a full premium in return for surrendering control of the company.

"Good Energy and its subsidiary Zap - Map have an extremely healthy, independent future focused on the best interests of our customers, employees and shareholders. We are committed to delivering growth for the exclusive benefit of our shareholders, not Ecotricity's," said Will Whitehorn, Chair of Good Energy.

Ecotricity said there is no certainty that any formal offer will be made for Good Energy. It has until the 9^th of August to make a formal offer or walk away under U.K. Takeover Panel rules.

Also read: Good Energy vs Bulb Energy: Good Energy CEO calls out Bulb’s Renewable Energy Claims

Increasing Green competition

With more focus than ever being shifted to green energy, we can expect to see competition between energy suppliers increase dramatically in this area. Larger suppliers could seek to buy out smaller green rivals in a bid to assert their dominance over this increasingly important battlefield for the energy industry.

Smaller suppliers meanwhile are seeing a lot of success from offering 100% renewable tariffs to eco-minded consumers with some dramatically increasing their customer base over the last few months and years.

More and more suppliers are moving into the green space in an attempt to stay both relevant and appealing to consumers.

Needless to say, the war between green energy suppliers is sure to only escalated as the UK government’s 2050 NetZero carbon target gets closer.

Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help. 

Further Reading

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Ban on Coal fired electricity brought forward to October 2024

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