The UK competition watchdog has referred the proposed merger between energy suppliers SSE plc (LON:SSE) and Npower for an in-depth investigation amid competition concerns.
Last month, the Competition and Markets Authority’s phase 1 investigation found that the tie-up could reduce competition, potentially leading to higher prices for some bill payers.
READ: CMA to further scrutinise SSE-Npower merger
It offered SSE and Npower the chance to provide some remedies and ease its concerns but said today that the two companies failed to do so.
A final decision on the merger will now be due on October 22.
The two energy giants announced back in November that they would merge their businesses to form a new, publicly-traded company.
The combination of SSE and Npower, owned by Germany’s Innogy, would reduce Britain’s Big Six energy suppliers to five.
SSE shares were flat at £13.95.