Ovo's takeover of Perth based SSE approved by regulator

The regulator's approved OVO Energy's takeover of rival supplier, SSE.

The Competition and Markets Authority has been examining the 500 million pound deal and has ruled the takeover can go ahead.

When it completes in January, OVO will become the UK's second-largest energy supplier, serving about 5 million households.

Commenting on the CMA's decision, Alistair Phillips-Davies, Chief Executive of SSE plc, said:

"We are very pleased that the CMA has cleared the proposed sale of SSE Energy Services to OVO Group.

"This underlines our long-held belief that a dedicated, focused and independent retailer will ultimately best serve customers, employees and other stakeholders. With the required regulatory approvals now in place, we can make the final preparations for completion, expected around mid-January 2020.

"Completion of the transaction will give SSE plc even sharper focus to delivering the low carbon infrastructure needed to help the UK reach net zero emissions. We have a clear strategy around developing, operating and owning renewable energy and electricity network assets, along with growing businesses complementary to this core.

We understand the 1000 SSE staff members in Perth will be transferred to OVO in January.

Stephen Fitzpatrick, CEO and Founder of OVO, said: “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.