Competition and Markets Authority clears sale of SSE's UK energy services business

Competition and Markets Authority has cleared the proposed sale of SSE Energy Services, SSE's household energy and services business in UK, to OVO Group.

The final preparations for completion is expected around mid-January 2020.

On completion, the net cash proceeds of this transaction will be used to reduce SSE's net debt. The agreement with OVO reflects an enterprise value for SSE Energy Services of GBP500 million (US$660 million) comprising GBP400 million (US$528 million) cash and GBP100 million (US$132 million) in loan notes. As stated when the transaction was announced on 13 September, cash proceeds received on completion of the transaction will reflect a deduction of GBP59 million (US$77.8 million) reflecting debt-like items and the impact of the operation of the 'locked box mechanism' which set a date for the transfer of economic interest of 30 June 2019.