E.On UK has agreed to buy rival OVO Energy in a major shake-up of the British energy market that will create the country\u2019s largest household supplier.<\/p>\n
The combined business is expected to serve around 9.6 million customers, overtaking Octopus Energy as Britain\u2019s biggest energy provider by customer numbers.<\/p>\n
Neither company disclosed the financial details of the transaction, though previous reports suggested the deal could be worth up to \u00a3600 million.<\/p>\n
The takeover is expected to face scrutiny from regulators, including the UK competition authorities, before completion, anticipated in the second half<\/a> of 2026.<\/p>\n The deal reflects the growing consolidation of Britain\u2019s energy sector following years of market volatility, tighter regulation and rising investment demands linked to the transition toward cleaner energy systems.<\/p>\n Stephen Fitzpatrick, founder of Ovo, said the economics of the retail energy market had changed fundamentally in recent years.<\/p>\n \u201cEnergy retail is now more regulated, more capital-intensive and increasingly dependent on long-term investment and scale,\u201d he said.<\/p>\n \u201cIn that context, bringing Ovo together<\/a> with E.On is the right next step for customers, for colleagues, and for the long-term commitment that decarbonisation requires.\u201d<\/p>\n Industry analysts said the merger would significantly strengthen E.On\u2019s position in the UK market while giving Ovo access to greater financial scale amid mounting pressure on suppliers to invest in infrastructure, customer technology<\/a> and low-carbon services.<\/p>\n Alongside the takeover, Ovo has also agreed to sell its home services<\/a> division \u2014 which includes boiler servicing and insurance operations \u2014 to Hometree.<\/p>\n