The Competition and Markets Authority (CMA) has cleared E.On's takeover of rival Ovo, a move that paves the way for the deal to create the UK's largest electricity supplier.
The watchdog said it would not refer the acquisition of Ovo by Germany's E.On for an in-depth investigation. It had been examining the tie-up to assess whether it would reduce competition in the energy market.
Deal details and customer base
E.On agreed to buy Ovo in May for an undisclosed sum, although reports indicated it could be as much as £600 million. The deal will see E.On add Ovo's four million customers to its existing 5.6 million customers, and it is expected to complete before the end of the year.
Background of Ovo
Ovo was founded by Stephen Fitzpatrick in 2009 and has since expanded to become one of the country's largest household suppliers, while also developing technology to allow for greener energy usage. Mayfair Equity Partners invested in the company in 2015.
However, the provider has come under pressure in recent years, with the firm previously saying that changes to expectations regarding financial resilience and increased regulation had "altered the economics of the sector". The group launched a review into its strategic options, ultimately deciding to move forward with a sale process.
It came after company accounts warned about a "material uncertainty" over its future following its failure to meet the targets.
