Talks Between EDP and SSE on $44 Billion Utility Merger Break Down

In early 2024, Portuguese energy giant EDP initiated merger discussions with UK-based SSE, according to sources familiar with the matter, as reported by Reuters. The proposed merger aimed to create one of Europe’s largest utility companies, with a combined market value of over $44 billion. Despite the ambitious plan, talks did not progress beyond preliminary stages, with SSE opting to pursue independent growth, according to multiple individuals with knowledge of the discussions.

The approach, which took place earlier in the year, reflected EDP’s desire to broaden its asset portfolio across regions, particularly in renewable energy, two of the people explained. However, SSE’s leadership, including CEO Alistair Phillips-Davies and Chair John Manzoni, declined the offer, choosing instead to focus on the company’s standalone expansion strategy. No specific details of the proposal were disclosed, per Reuters.

The discussions reportedly came to an end around June, and it remains uncertain whether EDP might revisit the deal in the future. One source, speaking on condition of anonymity, noted that EDP CEO Miguel Stilwell d’Andrade had led the outreach to SSE’s top executives, underscoring the potential strategic value the merger could have brought to both companies.

Had the deal gone through, the merger would have brought EDP and SSE closer to industry leaders such as Spain’s Iberdrola and Italy’s Enel, both of which have significantly larger market capitalizations.

Source: Reuters