Energy company E.On has reached an agreement to purchase competitor Ovo, forming one of the largest energy suppliers in the UK, the companies announced. This move signifies a substantial investment by E.On Group in the UK market, aimed at advancing consumer energy flexibility, empowering customers, reducing bills, and reshaping the energy system to be more people-centric.
Through the acquisition of Ovo, E.On will expand its customer base by approximately four million, adding to its existing 5.6 million customers in the UK. The combined entity is set to cater to around 9.6 million customers, overtaking the current leading supplier, Octopus.
The deal is anticipated to be finalized in the latter half of 2026 pending regulatory approval. Marc Spieker, E.On’s Chief Operating Officer Commercial, highlighted the importance of the UK market for E.On, particularly in providing flexible and customer-focused energy solutions. The acquisition of Ovo is strategic in bolstering E.On’s retail business and reinforcing its commitment to being the preferred partner for its customers.
While the financial details of the deal were not disclosed, reports suggest it could amount to as much as £600 million. Both companies assured customers that there would be no immediate changes as regulators review the transaction, pledging to honor existing tariffs in full.
The acquisition faces regulatory scrutiny, including a potential review by the UK’s competition watchdog, with the expected completion date set for the second half of 2026. Stephen Fitzpatrick, Ovo’s founder, emphasized the increasing regulation and capital intensity within the energy retail sector, indicating that joining forces with E.On aligns with the long-term investment and scale necessary for sustainable decarbonization efforts.
Moreover, E.On UK’s CEO, Chris Norbury, emphasized the shift towards a customer-led energy system, emphasizing the importance of flexibility in driving cost efficiency and resilience. The merger aims to accelerate the transition to a digitally-driven energy landscape that caters to a broader consumer base.
Norbury further emphasized that the deal’s core principle is not merely about scale but about creating a retailer with the technological prowess and customer-centric approach to make new energy solutions accessible and sustainable for all. The collaboration with Ovo, a digitally savvy business, reflects a shared vision of innovation driving affordability and sustainability in the energy sector.
In conclusion, the E.On-Ovo merger is positioned to drive innovation, enhance customer experience, and pave the way for a more inclusive and sustainable energy future.