StockMarketWire.com - SSE said it had decided to pull the plug on a proposed merger of its retail energy business with Innogy's npower unit.
The power utility said it would now consider other options for the business instead, including a de-merger or outright sale to another company.
SSE said the deal had been impacted by 'multiple factors' including the performance of both the businesses that were to be merged, government price caps and energy market conditions.
'These implications meant the new company would have faced very challenging market conditions, particularly during the period when it would have incurred the bulk of the integration costs,' SSE added.
Chief executive Alistair Phillips-Davies said the proposed deal was 'complex' with 'many moving parts'.
'We closely monitored the impact of all developments and continually reviewed whether this remained the right deal to do for our customers, our employees and our shareholders,' he said.
'Ultimately, we have now concluded that it is not.'
'This was not an easy decision to make, but we believe it is the right one.'
Story provided by StockMarketWire.com
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