Scottish Power and Ovo Energy have entered preliminary discussions over a potential merger that would create Britain’s third-largest household energy supplier, Sky News reported.
The talks, which have taken place in recent weeks, involve Iberdrola SA — Scottish Power’s parent — and Ovo, according to the report on Saturday, which cited sources it didn’t identify. Rothschild is advising Ovo, Sky said.
While Ovo — as the bigger company — would likely be the acquirer, Iberdrola could contribute cash and be a shareholder of the new combined group, it said, citing one of the sources. Separately, Ovo is also looking to ...