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SSE confirms merger with Npower

SSE has confirmed it is merging its domestic business in the UK with Npower to form a new energy company.SSE, the UK’s second-largest energy supplier, which also reported a big fall in its adjusted pre-tax profits of 13.9% in the six months to September, revealed the merger talks on Tuesday.The deal knocks Britain’s “Big Six” energy firms down to five.”We are very proud of what we’ve delivered over many years,” said chief executive Alistair Phillips-Davies.He said the merger would allow both to “focus more acutely on pursuing their own dedicated strategies”.The news comes less than a month after the government published draft legislation to lower the cost of energy bills.Break feeSSE’s shareholders will hold 65.6% of the new company, with Innogy, which owns Npower, holding the rest.Innogy will also receive a break fee of £60m if SSE’s shareholders fail to approve the deal by 31 July 2018.In a statement, SSE said the new firm was expected “to deliver enhanced value” and that savings in costs and combined IT platforms would “ultimately enable the company to be an efficient competitor in its markets”.It added that no final decision on the implications for employees would be taken without talks with their representative bodies.SSE retail’s chief operating officer, Tony Keeling, said: “We’re proud of our track record in customer service and have plenty to build on.”But there is a huge amount of competition and we need to do more than ever to compete by providing value for money and excellent experiences for customers.”We have an exciting opportunity to create a major new independent supplier with a single-minded focus on customers.”The merged group is expected to serve about 11.5 million customers.
Source: BBC News

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