E.ON to buy OVO in deal set to reshape UK energy market

The German energy group E.ON has signed an agreement to acquire the UK energy supplier OVO in a deal that is expected to see it become one of Britain’s largest household suppliers of electricity and gas.

According to data from regulator Ofgem, the two companies are already the third and fourth largest energy providers in the UK.

The deal, pending approval by the regulatory authorities (clearance is expected in the second half of 2026) would result in a further four million OVO customers added to E.ON's existing 5.6 million customer base in the UK.

“E.ON already supplies around 5.6 million customers in the UK. With OVO, around a further four million customers are expected to be added. This customer base in a highly developed and dynamic market environment enables E.ON to develop innovative energy solutions and scale them across Europe,” said E.ON in a press release.

Growing its market share

Marc Spieker, Chief Operating Officer Commercial at E.ON, said the UK is an important growth market for the company, particularly for "flexibility and customer‑focused energy solutions."

“The planned acquisition of OVO strengthens our retail business and underlines our commitment to be the trusted partner of choice for our customers. Energy flexibility and electrification are becoming increasingly important and are critical to the success of the energy transition.”

The planned transaction is focused on the “continued expansion of a customer‑centric and increasingly digital energy business.”

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With around seven million smart meters installed, E.ON and OVO together connect more than 60% of their customers in the UK in a fully digital manner.

The parties have agreed not to disclose the purchase price. The planned acquisition is subject to regulatory approvals, especially by the UK regulatory authorities including the Competition and Markets Authority (CMA).

“Closing of the transaction is expected in the second half of 2026. Until regulatory clearance has been obtained and closing has been reached, E.ON Next and OVO will continue to operate as legally and operationally independent companies,” said E.ON.

A changing UK energy market

OVO confirmed that the transaction includes its retail customers and everyone who works at OVO to support them.

“Until the approval process completes, which is expected later this year, OVO and E.ON will continue to operate as separate companies and there will be no immediate changes for customers.”  

OVO has also agreed to sell its Home Services business, which provides boiler insurance and boiler servicing, to Hometree, subject to regulatory approval.

The UK energy market has undergone significant change in recent years, the company noted.

“Expectations on financial resilience, alongside increasing regulatory oversight, have reshaped how suppliers operate at scale. These changes have altered the economics of the sector, particularly for standalone energy retail businesses. 

“In its next phase of evolution, the market will favour greater scale and access to long-term capital to continue investing in the energy transition. Following a review of its strategic options, OVO concluded that a sale to E.ON provides the strongest long-term platform for the business and its customers,” said OVO.

Existing tariffs to be honoured

On completion of E.ON’s acquisition of OVO, E.ON will continue the existing energy intelligence platform licence agreement with Kaluza in respect of OVO’s customer base.

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.”

OVO said that for customers of both E.ON Next and itself there will be no change during the regulatory review period and existing tariffs will be honoured in full and service will continue unchanged.