Britain’s competition watchdog has ordered an in-depth investigation of the merger of SSE’s retail power and gas business in the UK with German rival Innogy’s Npower, the office said on Tuesday.
The Competition and Markets Authority (CMA) said the initial Phase 1 investigation found that the deal could reduce competition, potentially leading to higher prices for some bill payers.
The two companies set out the proposed merger in November, with SSE shareholders to get a 66% stake in the combined business.
A Phase II investigation by the CMA, typically lasts 24 weeks and can be extended. SSE said it expects to complete the formation and listing of the new company in the last quarter of 2018 or first quarter of 2019.
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