Business
E.ON Agrees to Buy Ovo in Deal to Create UK's Biggest Energy Supplier
AI Summary
German energy group E.ON has agreed to buy UK rival Ovo in a deal that will create Britain's biggest gas and electricity supplier, serving about 9.6 million customers.
The Acquisition Deal
The German energy group E.ON has agreed to buy struggling UK rival Ovo in a deal that would create Britain’s biggest gas and electricity supplier.
The Combined Entity
The combined company will serve about 9.6 million customers, overtaking the market leader, Octopus, which serves almost 8m households in the UK.
- E.ON has about 5.6 million customers in the UK.
- Ovo has 4 million customers.
The Impact on the UK Energy Market
E.ON said the deal represented a significant investment in the UK market and would bring bills down for customers. The acquisition is expected to be cleared in the second half of the year.
The Future Outlook
The deal aims to create a company that orchestrates consumer flexibility, digitisation, solar, batteries, and electric vehicles. E.ON plans to continue Ovo's energy intelligence platform licence agreement with Kaluza, which simplifies energy billing and reduces costs.