Homeserve and D&G merger would create rival heating cover heavyweight

Homeserve’s potential £500 million takeover of Domestic & General would reduce the number of major players, but would create a contender with the power to challenge British Gas in the home and heating cover market, says uSwitch.com, the independent online comparison and switching service.

Geoff Slaughter, Energy Product Manager at uSwitch.com, says: “The home and heating cover market is dominated by British Gas – no other company comes near it for size and scope. Homeserve and Domestic & General are the nearest contenders so I can understand why some may become jittery at the thought of the two becoming one.

“However, a merger might actually be good for competition - it would create a company with enough clout to take on British Gas for its title as number one provider and would likely show consumers that there is more than Hobson’s choice available to them.”