Energy provider SSE has confirmed it is negotiating the sale of its energy retail business to Ovo Group.
While SSE stress that no deal has yet been struck, it would make Ovo one of the largest energy companies in the UK should it go through.
Ovo was only founded 10 years ago and supplies energy and related services to around 5.7 million household customers across the UK.
SSE said it is “actively progressing a number of options for the future of SSE Energy Services”, having determined that its “best future lies outside the SSE group”.
An SSE statement said: “These discussions are continuing, however no final decisions have been taken and no agreements regarding the terms of any transaction have been entered into.
“The board remains focused on securing the best long-term future for the business, its customers and employees, and for shareholders.”