The U.K. Competition and Markets Authority has cleared Ovo Group Ltd.'s proposed acquisition of SSE PLC's retail energy business.

Under the deal, OVO Energy Ltd. will buy SSE Energy Services Group Ltd. for £500 million in enterprise value, with Ovo Energy paying £400 million in cash. Once the deal is completed, Ovo Energy will also issue £100 million in loan notes to SSE, which will be due for repayment in 2029 and carry an annual interest rate of 13.25%.

With the required regulatory approvals now in place, SSE said in a Dec. 10 company news release that it can now make the final preparations for completion which is expected around mid-January 2020.