finance
E.On Agrees to Acquire Ovo Energy Creating UK's Largest Supplier
German energy group E.On has agreed to buy British supplier Ovo Energy in a deal that will create the UK's largest energy provider serving nearly 10 million customers. The transaction, whose value was not disclosed, remains subject to regulatory approval expected in the second half of 2026.
May 11, 9:57 AM·2m read3 sources
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On has agreed to acquire rival Ovo Energy, a move that will create Britain's largest energy supplier serving almost 10 million customers once completed. The deal will position the combined business ahead of current market leader Octopus Energy. The value of the transaction was not disclosed, though earlier reports had estimated it could reach as much as £600m.
The takeover remains subject to regulatory approval, which both companies expect to secure during the second half of 2026. Until that process concludes, the two suppliers will continue to operate independently. The agreement covers Ovo’s retail customer base and all employees supporting those customers.
Consumer groups urged Ovo customers not to panic, stressing that gas and electricity supplies will remain unaffected. All existing tariffs will be honoured for the full duration of current contracts. Credit balances would also be protected if the deal is approved, with customers transferred automatically.
A consumer group said Ovo customers do not need to take any action and remain free to switch suppliers if they wish. On had assured continuity of service. Another price comparison service noted that some customers might feel nervous but emphasised the safeguards in place.
The combined entity is expected to accelerate the shift toward a more flexible and digitally focused energy system. The companies stated that flexibility will play a central role in keeping costs down and improving resilience of the UK energy network.
They also highlighted the importance of enabling customers to adopt low-carbon technologies.
Ovo said the sale followed a strategic review that concluded joining a larger group would provide the strongest long-term platform for its business and customers. The company added that the move would support continued investment in products and services to help households manage energy use.
