Energy lawyers at Bond Dickinson advised RWE npower on the sale of two of its supply units to a rival firm for £218m, in a bid to improve energy margins and offer more competitive tariffs.
The firm, which has offices in Newcastle and Tees Valley, advised on the sale of Electricity Plus and Gas Plus, to Telecom Plus plc, the operator of the Utility Warehouse brand, in a transaction subject to both the approval of Telecom Plus shareholders and the OFT.
Completion on the deal with Telecom Plus, which provides gas, electricity, fixed-line telephone and broadband internet services, is expected in late December or early January.
As part of the deal, Telecom Plus will acquire contracts to supply gas and electricity to 770,000 accounts.
The transaction also included the negotiation of a new 20-year wholesale supply arrangement with a bespoke collateral arrangement between npower and the enlarged Telecom Plus group.
Bond Dickinson corporate finance partner and RWE npower client partner Simon Hewes led the team which advised RWE npower, alongside energy partner Chris Towner and banking partner Philip Withey.
The trio were assisted by a number of specialists including senior counsel David Harrison, who helped in relation to competition issues and partner Andrew Kimble, who provided assistance in relation to data protection issues.
Hewes said: “We are delighted to have advised RWE npower on this high-profile deal in the energy sector, mobilising a team of highly specialist lawyers.
“It will allow both RWE npower and Telecom Plus to offer the maximum number of tariffs imposed by Ofgem.
“It is a positive move for the energy industry, offering greater competition and increasing consumer choice of energy suppliers.”
RWE npower chief executive Paul Massara said: “The announcement shows that Britain is well on the way to having a Big Seven rather than a Big Six.
“We are very grateful to the Bond Dickinson team for their help in seeing the deal through and have been impressed by the quality of their client service and their knowledge of the industry.”