E.ON Approved to Acquire OVO Energy Creating Britain’s Largest Supplier

By the Editorial Team · Friday, October 2, 2026

E.ON has received approval from the UK Competition and Markets Authority to acquire Ovo Energy, enabling the formation of the largest electricity supplier in Britain with a combined customer base of over 9.6 million. This deal underscores significant market consolidation amid evolving regulatory pressures and will likely reshape the UK energy sector once completed by year-end.

E.ON’s acquisition of rival energy supplier Ovo Energy has received approval from the UK Competition and Markets Authority (CMA), allowing the deal to proceed and potentially creating the largest electricity supplier in Britain. The CMA concluded that the takeover does not pose significant risks to market competition and will not require further investigation.

The agreement, initially announced in May, involves E.ON purchasing Ovo for an undisclosed sum, widely reported to be as much as £600 million. The deal will combine E.ON’s existing 5.6 million customers with Ovo’s four million, significantly expanding E.ON’s footprint in the UK energy market. The transaction is expected to be completed by the end of this year.

Ovo Energy, founded in 2009 by Stephen Fitzpatrick, rapidly grew to become one of the country’s major energy suppliers, including investments in technologies aimed at greener energy use. However, in recent years, the company has faced increased regulatory pressures and challenges related to financial resilience. These difficulties prompted Ovo to explore strategic alternatives, ultimately leading to the decision to sell. Company accounts previously signaled “material uncertainty” regarding future viability after failing to meet certain targets.

Mayfair Equity Partners, an investor in Ovo since 2015, was also involved in the company’s development prior to the sale. The acquisition comes as the energy sector undergoes significant changes, including tighter regulations and evolving market conditions.

The potential impact of the deal on employees has drawn attention from labor representatives. Simon Coop, a national officer for the Unite union representing energy workers, emphasized the need for fair treatment of staff at both companies. He noted previous concerns following Ovo’s purchase of SSE’s energy supply arm in 2020, which resulted in substantial job losses and office closures. Coop stated that the union plans to engage with both Ovo and E.ON to ensure no reductions in pay, terms, or conditions occur as a result of the acquisition, describing the deal as “a new chapter” for Ovo workers.

The CMA’s clearance of the takeover highlights its assessment that the merger will not substantially lessen competition in the energy market, despite consolidating a significant portion of customers under one supplier. Observers note that the combined entity will wield considerable market power but maintain that regulatory oversight remains robust.

Overall, the acquisition marks a significant consolidation in the UK energy sector, reflecting ongoing shifts driven by competition, regulation, and market dynamics. The completion of the deal is expected to reshape the landscape, with E.ON emerging as the country’s largest electricity supplier by customer numbers.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.