![\"Eon](\"https:\/\/www.europesays.com\/germany\/wp-content\/uploads\/2026\/05\/b91c5d864731a520885ed756897201fc.jpeg\")
Eon\u2018s takeover of Ovo is expected to be completed in the second half of 2026 – Mario Hommes\/DeFodi Images <\/p>\n Eon\u2018s takeover of Ovo is expected to be completed in the second half of 2026 – Mario Hommes\/DeFodi Images <\/p>\n
Germany\u2019s Eon is to become Britain\u2019s largest energy supplier after agreeing to a deal to buy struggling rival Ovo<\/a>.<\/p>\n Eon said on Monday it would take on the home retail business of Ovo, the UK\u2019s fourth-largest gas and electricity supplier.<\/p>\n The takeover will hand Eon an additional four million customers, bringing its total to around 9.6 million and overtaking Octopus to become the country\u2019s largest supplier.<\/p>\n Terms of the deal were not disclosed, though previous reports suggested it could be worth up to \u00a3600m.<\/p>\n Stephen Fitzpatrick<\/a>, a former City trader, founded Ovo in 2009 and grew the business into one of Britain\u2019s largest energy suppliers after acquiring SSE\u2019s retail business for \u00a3400m in 2020.<\/p>\n But the company has been beset with financial problems, posting a net loss of \u00a3135m in 2024.<\/p>\n It warned last year that a \u201cmaterial uncertainty\u201d clouded its future because it was having difficulty meeting financial resilience targets set by regulator Ofgem.<\/p>\n Mr Fitzpatrick, the founder of Ovo, said: \u201cEnergy retail is now more regulated, more capital-intensive and increasingly dependent on long-term investment and scale.<\/p>\n \u201cIn that context, bringing Ovo together with Eon is the right next step for customers, for colleagues and for the long-term commitment that decarbonisation requires.\u201d<\/p>\n The company has been struggling for months to secure its future, appointing Rothschild as its bankers to raise hundreds of millions of pounds through new investment or a sale. French energy companies EDF and Engie also held talks about a possible acquisition.<\/p>\n Ovo has also been cutting tens of millions of pounds in costs under a new business plan aimed at securing its survival.<\/p>\n The sale will end Mr Fitzpatrick\u2019s hopes of regaining control of the company he founded after he failed to convince other shareholders of his plans to inject \u00a3200m into the business.<\/p>\n The tycoon, who also owns the luxury private members\u2019 club Kensington Roof Gardens, has extracted tens of millions of pounds from Ovo through a licensing deal to use the brand.<\/p>\n It is not clear whether the Ovo brand will continue to exist following the merger. Eon said it was planning a \u201cfull integration\u201d of Ovo into its operations.<\/p>\n The combined company will be the largest provider of domestic electricity, covering 28pc of the UK market. However, it will still be only the third-largest provider of domestic gas, covering 23pc of the market, after Octopus and British Gas, which cover 27pc and 25pc respectively.<\/p>\n