German energy firm E.On has agreed to buy rival Ovo in a deal that would create Britain's largest energy supplier. The combined business will serve approximately 9.6 million customers, surpassing the current top supplier Octopus.
Deal Value and Regulatory Hurdles
The firms did not disclose the value of the deal, although previous reports indicated that it could be as much as £600 million. The takeover is subject to regulatory hurdles, including potential scrutiny from the UK's competition watchdog, and is expected to complete in the second half of 2026.
Ovo Founder Comments
Stephen Fitzpatrick, founder of Ovo, said: "Energy retail is now more regulated, more capital intensive and increasingly dependent on long-term investment and scale. In that context, bringing Ovo together with E.On is the right next step for customers, for colleagues, and for the long-term commitment that decarbonisation requires."
Home Services Division Sale
Ovo has also agreed to sell its home services division, which provides boiler servicing and insurance, to Hometree. Ovo has insisted it is "committed" to meeting financial resilience rules set by the industry watchdog after its accounts warned about a "material uncertainty" over its future following its failure to meet the targets.
