Energy giant with 5million customers in merger talks to create UK's 3rd BIGGEST gas & electricity supplier
TWO major energy suppliers are in talks about a merger.
If it goes ahead it would create the UK's third-largest gas and electricity retailer.
3
Scottish Power, owned by Spain's Iberdrola, and Ovo Energy are in talks to create a merger.
It would create a company serving more than six million households, Sky News reports.
Talks are still in the early stages, and any formal agreement will take months if it goes ahead.
With Ovo being the larger company, serving four million customers, they are likely to be the acquiring entity.
Iberdrola would potentially contribute cash and remain as a shareholder.
If they do merge, it would create the third-largest supplier, behind Centrica-owned British Gas and Octopus Energy.
Scottish Power currently serves around 2.4 million households.
Alongside the potential merger, Ovo is aiming to raise £300 million from the sale of shares in the company.
Last year the company hired Rothschild to explore options around new investors or a sale.
Rothschild has reportedly contacted financial investors in recent weeks.
Stop Making This Air Conditioning Mistake: How to Slash Your Summer Energy Bill
Ovo became one of the UK's leading suppliers in 2020 after it bought the retail supply arm of SSE.
Since Justin King became Ovo's chair, the company has prioritised repairing its regulatory relationships.
Iberdrola bought Scottish Power in 2007 for over £11 billion.
3
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
26 minutes ago
- Reuters
Austrian GP follows Miami in extending F1 contract to 2041
SPIELBERG, Austria, June 29 (Reuters) - The Austrian Grand Prix at the Red Bull Ring will stay on the calendar through 2041 after announcing on Sunday a contract extension that equals Miami as the longest in Formula One. The current deal, last extended two years ago, ran to 2030. The circuit in Spielberg is owned by the Austrian energy drinks company that owns Red Bull Racing, and has Dutch four times world champion Max Verstappen as their star driver, and Italy-based Racing Bulls. Miami agreed a 10-year extension to 2041 last month. Behind them, Bahrain has a deal to 2036, Melbourne to 2035, Saudi Arabia and Qatar to at least 2032. "Austria has long been an incredibly special race for Formula One so it's fantastic we have secured the long-term future of a Grand Prix so deeply rooted in the sport's history," said Formula One chief executive Stefano Domenicali. Verstappen has won a record five times in Spielberg, a 4.3km circuit known for its picturesque backdrop and undulating layout. The late Red Bull founder Dietrich Mateschitz, whose son Mark is now at the helm, invested heavily in renovating the circuit. "I am delighted that Formula One will remain at the Red Bull Ring for many years to come. I am proud to continue my father's legacy," he said.
BBC News
27 minutes ago
- BBC News
Wirtz fee 'insane' but he can 'give something great'
Former Liverpool boss Jurgen Klopp says he understands why the Reds have paid a club record sum for Germany star Florian Wirtz - but described the £116m deal as "insane".Klopp ended his nine-year spell as Liverpool boss last summer before his successor, Arne Slot, won the Premier League title in his first season in Reds have since spent big on recruitment, signing Wirtz from Bayer Leverkusen for a club record fee."There's no question about it, that's an insane sum," said Klopp. "We all agree that we're talking about a great player here."I know I once said that I'm out if we pay 100m euros for a player. But the world keeps changing. That is how the market is."My part of football will always remain the game itself, but if you want to play at the top level, you can't train all your players yourself. Sometimes you need to get hold [of players from] somewhere else."Asked if Wirtz, 22, will establish himself at Anfield, Klopp added: "Yes, although of course I don't know exactly which position Arne has in mind for Florian."He's an outstanding player who can give any club something great. Whether he'll make the reigning English champions even better remains to be seen."
Daily Mail
40 minutes ago
- Daily Mail
Is Keir already lining up his next U-turn? Starmer faces fresh rebellion from Labour MPs over his 'family farm tax'
Sir Keir Starmer has been put on notice of a fresh Labour rebellion over the Government's 'family farm tax'. More than 40 Labour MPs are said to be considering a bid to water down looming changes to agricultural and business inheritance tax relief. It comes after the Prime Minister performed a trio of embarrassing U-turns in recent weeks. Sir Keir has reversed his position on axing the winter fuel payment for millions of pensioners, a national grooming gangs inquiry, and welfare cuts. This has left Labour rebels feeling emboldened that they can force the Government into further policy changes. According to the Telegraph, a group of Labour backbenchers are considering using amendments to legislation to exempt small family farms from a planned tax raid. At last year's Budget, Chancellor Rachel Reeves announced farmers will pay a 20 per cent rate of inheritance tax on land and property they inherit worth more than £1million. The Government has insisted the measures - dubbed the 'family farm tax' and set to be in place from April 2026 - will only affect the wealthiest quarter of landowners. But the National Farmers' Union (NFU) and others say the impact of Ms Reeves' measures will be much more widespread. Critics claim the move could wipe out family-run farms with tight margins, as they will be forced to sell up in order to pay death duties. There have been months of demonstrations by farmers in response to the Chancellor's tax raid, including tractor protests in Wesminster. A 'rural growth group' of Labour MPs is now proposing the raising of the £1million cut-off point at which estates lose their tax reliefs. They have suggested estates receive full tax relief on the value of agricultural properties up to £10million, 50 per cent to £20million, and nil thereafter. Sam Rushworth, Labour MP for Bishop Auckland, who is a member of the group, told the newspaper they would 'consider what amendments to put down'. Mr Rushworth said: 'We are all keen to avoid amendments. I don't want it to get to that point. I am a Labour MP and I broadly support the Government. 'I would like to see them bring forward different recommendations in the Bill.' Ex-Cabinet minister Louise Haigh, who was a leading rebel over the Government's now partially-reversed welfare cuts, has called for Sir Keir to 'reset' his relationship with the British public. 'I think this is a moment and an opportunity to reset the Government's relationship with the British public and to move forward, to adopt a different approach to our economic policy and our political strategy,' she told the BBC in the wake of the PM's climbdown on welfare changes. 'And I think that has been accepted from within government and a lot of people, both in the parliamentary Labour Party, but crucially, the country will really welcome that.' The Government's original welfare package had restricted eligibility for Personal Independence Payment (PIP), which is the main disability payment in England. It also cut the health-related element of Universal Credit. But, after Sir Keir offered concessions to rebel MPs, the changes to PIP will now only be implemented in November 2026 and apply to new claimants only. All existing recipients of the health element of Universal Credit will also have their incomes protected in real terms. A Government spokesman said: 'Our reforms to agricultural and business property relief are vital to fix the public services we all rely on. 'Three quarters of estates will continue to pay no inheritance tax at all, while the remaining quarter will pay half the inheritance tax that most people pay, and payments can be spread over 10 years, interest-free. 'We're investing billions of pounds in sustainable food production and nature's recovery, slashing costs for food producers to export to the EU and have appointed former NFU president Baroness Minette Batters to advise on reforms to boost farmers profits.'
