German utility group E.ON is poised to become one of Britain’s largest energy suppliers after it announced plans on Monday to buy rival Ovo Energy for an undisclosed sum.
The deal is expected to create one of the UK’s biggest energy suppliers, with the two companies already the third- and fourth-largest providers, according to data from regulator Ofgem.
The acquisition will add a further 4 million OVO customers to E.ON’s existing 5.6 million customer base in the United Kingdom, which the German company said was an important growth market.
“The planned acquisition of OVO strengthens our retail business and underlines our commitment to be the trusted partner of choice for our customers,” said Marc Spieker, E.ON’s chief operating officer for commercial operations.
The UK energy market has undergone significant change in recent years, particularly regarding expectations on financial resilience, alongside increasing regulatory oversight, OVO said in a separate statement.
“These changes have altered the economics of the sector, particularly for standalone energy retail businesses,” it said, adding that the evolving market would favour greater scale and access to long-term capital in the future.
The parties agreed not to disclose the purchase price, with the deal set to close in the second half of 2026, pending regulatory approvals including from Britain’s Competition and Markets Authority, the firms said.
Source: Reuters.com