Octopus Energy has confirmed it is in discussions with “many companies” after reports suggested it was seeking to acquire fellow challenger brand Co-op Energy.
The challenger energy firm refused to comment directly on reports in the Sunday Times that it was in talks with Co-op Energy about a deal that would take it over the million-customer mark. However, Utility Week understands a potential takeover is being discussed, with Octopus thought to see potential to drive efficiency savings relating to Co-Op’s acquisition of Flow Energy last year.
Co-op Energy is owned by the Midcounties Cooperative and in its latest annual report chief executive Phil Posonby said the losses within the energy business had “worsened”.
He added that underlying conditions in the market such as the price cap, wholesale costs and greater competition were unlikely to improve and that the board had been considering a “range of options” to reduce the energy retailer’s overall impact on the wider business.
Last year Co-op acquired struggling supplier Flow Energy in a £9.25 million deal which saw Flow’s 130,000 customers remain with a separate brand under its own licence and with its own tariffs.
When GB Energy went under in 2016 Co-op acquired its 160,000 customers.
A spokesperson for Co-op Energy said in response for a request for comment that it will not be commenting on “speculation”.
Meanwhile Octopus Energy, part of the Octopus Group, has made some high-profile acquisitions in recent years, including the customers of failed supplier Iresa.
The company, headed by chief executive Greg Jackson, has also announced partnerships including with Amazon Alexa and banking app Monzo.
It is the latest sign of disruption in the market, with fellow challenger company, Ovo, in talks to acquire big six firm, SSE.
Octopus chief executive, Greg Jackson, will be one of the speakers at Utility Week Congress 2019