Challenger energy firm First Utility reportedly targeted by CVC

Challenger energy supplier First Utility has reportedly been approached by private equity firm CVC Capital Partners about a £500m takeover.

According to Sky News, the move came just ahead of a report last week by the Competition and Markets Authority, which concluded that British customers were being overcharged due to a lack of competition.

First Utility, which has more than 800,000 customers, has been exploring a stock market flotation for several months and is currently in the process of appointing investment banks to work on a listing, according to Sky.

Sky cited sources as saying that such a move would not take place until after the CMA publishes its final recommendations for energy market reform, which are expected towards the end of the year.