CMA approves OVO Energy takeover of SSE Energy Services in £500 million deal

The approval comes following an investigation by the CMA into the deal that will see OVO purchase SSE ’s household energy business and take on SSE’s 3.5 million customers. The deal will see OVO become one of the UK’s biggest energy suppliers.

“We are very pleased the CMA has cleared the proposed sale. This underlines our long-held belief that a dedicated, focused and independent retailer will ultimately best serve customers, employees and stakeholders. With the required regulatory approvals now in place, we can make the final preparations for completion, expected around mid-January. The sale will give SSE an even sharper focus to deliver the low carbon infrastructure the UK needs to meet its net zero emissions aims,” said Alistair Phillips-Davies, chief executive of SSE.

Until the transaction is completed the companies will operate as independent entities. OVO will operate under the SSE brand before eventually changing to its own name and brand. All household contracts will be honoured by OVO.

The deal follows SSE’s attempt last year to combine with Npower, but that merger collapsed last December.

“We’re delighted with the CMA’s decision and look forward to bringing SSE into the OVO family. There is a lot of work to be done but we’re excited about the challenge ahead and the opportunity to help even more customers on the journey to zero carbon”, said Stephen Fitzpatrick, chief executive and founder of OVO.

In separate news, OVO announced a new partnership with Mitsubishi Motors to ‘offer innovative green solutions to their respective customers.’

With electric vehicles being a key part of creating a greener future the collaboration could become just the first between energy and motor companies.

Tom Pakenham, director of EVs at OVO Energy, said there was a clear case for collaboration between energy and auto companies. "Electrifying transport represents one of the biggest opportunities for like-minded businesses to work together and offer competitive greener solutions to their customers," he said. "We're delighted to partner with Mitsubishi Motors to explore innovative and exciting ways to benefit our customers and the environment."

For Further Reading

Over 5.3 million customers have switched Energy Supplier so far in 2019

The Future of the Energy Market

1 in 3 Smart Meter users have seen their energy usage fall claims report