Image source: E.ON

E.ON has agreed to acquire UK energy supplier OVO Energy in a deal that would create one of the largest retail energy providers in Britain.

The transaction, announced on 11 May, will combine E.ON’s existing UK customer base of approximately 5.6 million accounts with OVO’s roughly 4 million customers, creating a combined business serving around 9.6 million households.

While the financial terms of the deal were not officially disclosed, media reports have estimated the acquisition value at around £550 million to £600 million (approximately $695 million to $758 million).

The acquisition is expected to reshape the UK energy retail market, positioning the combined E.ON-OVO business alongside major suppliers such as Octopus Energy and British Gas. According to market analysts, the combined entity would hold approximately 25% of the UK domestic energy market.

E.ON stated that the acquisition is intended to accelerate development of consumer energy flexibility services, including smart tariffs, electric vehicle charging, home batteries, and distributed energy management solutions.

The company said existing tariffs and customer services at both E.ON Next and OVO would remain unchanged during the regulatory review process. Completion of the transaction is expected in the second half of 2026, subject to approval from UK competition and regulatory authorities, including the Competition and Markets Authority (CMA).

The deal comes amid continued consolidation in the UK energy sector following several years of market volatility, tighter financial resilience requirements, and increased regulatory oversight after the 2021–2022 energy crisis.

OVO, founded in 2009 as a challenger supplier to the UK’s traditional “Big Six” utilities, expanded significantly through its acquisition of SSE’s retail energy business in 2020. However, the company has faced operational and financial pressures in recent years, including restructuring measures and cost reductions.

Industry analysts said the transaction reflects a broader shift toward larger-scale suppliers better positioned to absorb regulatory costs, invest in digital energy services, and support electrification trends such as heat pumps, EV charging, and flexible demand management.

Source: energylivenews.com