UK: SSE approaches firms over merging US$1B supply arm

British energy company SSE has approached companies including broadband provider TalkTalk Telecom Group about a deal to offload its household supply arm, Sky News reported.

SSE will update investors about the future of its retail unit, which its Chief Executive Alistair Phillips-Davies values at 1 billion pounds (US$1.29 billion), on May 22, Sky News reported.

SSE is aiming to find a buyer or a merger partner, but despite recent discussions a tie-up with TalkTalk is unlikely, the Sky News report said, citing a source.

In December, SSE and energy group Innogy SE scrapped plans to merge their British retail operations after the industry regulator proposed a cap on consumer bills, leaving them looking for other consolidation options.