Sunday 28 April 2019 4:37 pm

SSE talks to Talktalk over £1bn retail unit after scrapping Npower deal

Scottish energy supplier SSE has approached a number of its rivals, and broadband provider Talktalk as it tries to find a buyer for its £1bn retail division.

The company has promised to update shareholders on the future of the unit before its full year results towards the end of May, after a merger deal with rival Npower fell through late last year.

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Sky News reported that SSE has stepped up its efforts to find someone to buy or merge with the business.

It hopes the business could fetch around £1bn and is being advised by Credit Suisse and Morgan Stanley, Sky reported over the weekend.

SSE declined to comment.

In March the company said efforts to find an alternative for the unit are “continuing, including progress on potential external collateral arrangements that may support the opportunities for a future outside the SSE Group.”

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The business segment has become less appealing after the a new price cap reduced expected adjusted operating margin to between two and three per cent, down from 6.8 per cent last year.

“All options are being assessed with the interests of customers, employees and shareholders being given full consideration. SSE intends to provide an assessment of the preferred option by the end of May 2019,” SSE told investors in March.