Portugal's main power utility EDP (EDP.LS),  initiated merger discussions with London-listed peer SSE (SSE.L), opens new tab earlier this year, but talks did not progress, three people familiar with the matter told Reuters.

The proposed deal would have created one of Europe’s largest utilities, with the companies' combined market value exceeding $44 billion, though still smaller than leaders Iberdrola (IBE.MC),  and Enel (ENEI.MI), 

EDP made the approach before the summer, seeking to create a regionally broader asset portfolio, two of the people said. SSE’s management declined the proposal, preferring to focus on growing the company independently, the people added.

They did not give details of the proposal.

Talks ended around June, one of them said, speaking on condition of anonymity because they were not authorized to speak publicly.