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The German energy provider has been given the green light to buy UK firm Ovo and create one of the country’s largest energy suppliers.
The competition regulator today waved through Eon’s bid in the latest sign of consolidation in the energy sector as the number of main suppliers falls to five.
Eon has about 5.6million customers in the UK. Once it acquires Ovo, the combined group’s customer base is expected to be around 9.6million, potentially making it the largest energy provider in the UK.
The Competition and Markets Authority (CMA) today said that the deal would not reduce competition in the market.
In May this year, Eon announced plans to buy Ovo for around £600million to create one of Britain’s biggest suppliers but faced scrutiny over competition concerns. The CMA today said it had cleared the acquisition and would not refer it for an in-depth investigation.
The deal, expected to complete by the end of this year, comes as Eon and other firms try to build scale to help them cope with slimmer margins and fend off competition from Octopus Energy, which last year overtook British Gas as the sector’s largest energy supplier.
In August Eon boss Norbury refused to rule out job cuts as part of its deal with Ovo, as it eyed potential cost savings from the deal.
Norbury said the combination with the UK challenger business would bring economies of scale, which could include technology savings and removing duplicate roles across the combined company.
Ovo has endured a tumultuous history since being founded by entrepreneur Stephen Fitzpatrick in 2009. Last year, Ovo’s pre-tax losses widened to £71million, from £61million in 2024, according to accounts filed via Companies House. With regulators now require energy firms to hold much larger cash reserves. For Ovo, joining forces with a giant like Eon provides the financial backing needed to remain stable.
Ovo has said on its website, as of now nothing changes. You don’t need to do anything. Your energy supply, your tariff, your balances and the way you interact with us all stay the same. The same teams will continue to support you, just as they do today.
We’ll let you know well in advance if anything is going to change.
OVO also added, the deal is not yet complete and, for now, OVO and E.ON will continue to operate as separate businesses and everything stays as it is today.
Although Eon has previously said that existing tariffs would be honoured in full and that service would continue unchanged, it worth keeping an eye on any changes.
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Another one (British business) bites the dust.
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