Co-op Energy ‘in merger talks’
Warwick-headquartered Co-op Energy is reported to be in merger talks with Octopus Energy as part of the latest shake-up in the energy market.
Octopus is around twice the size of Co-op Energy and a combined business would have around 1.2m customers.
However talks may result in Octopus acquiring “some or all” of the company’s customers, according to The Sunday Times.
Co-op Energy is part of the Midcounties Co-operative group, which has been advised by PwC on its options for the energy business.
The UK’s energy companies have been looking at consolidation opportunities as trading conditions have toughened.
Last week Solarplicity became the 13th energy company to collapse in 20 months as smaller firms have struggled.
But even the big six energy suppliers have sought out greater stability and security, although SSE and Npower’s planned merger did not succeed.
However Co-op Energy did buy Flow Energy last year in a £9.25m deal, while Ovo Energy now plans to buy SSE’s household supply business.