The deal will see E.On add Ovo’s four million customers to its existing 5.6 million customers
Britain’s largest electricity provider is set to be created after regulators approved German firm E.On’s takeover of a rival supplier, Ovo.
The Competition and Markets Authority (CMA) announced that it will not refer the proposed acquisition for a second, more detailed phase of investigation.
The watchdog had been assessing the transaction to establish whether the deal would significantly reduce competition within the UK domestic energy sector.
E.On agreed to purchase Ovo back in May for an unconfirmed sum, although reports at the time suggested the deal could be valued at as much as £600m.
Anticipated to complete prior to the end of the year, the merger will see E.On add Ovo’s four million users to its current base of 5.6 million customers.
Founded in 2009 by Stephen Fitzpatrick, Ovo has grown into one of the country’s leading domestic energy providers, while also pioneering technology aimed at supporting greener power consumption.
Mayfair Equity Partners invested in the company in 2015.
But the provider has come under pressure in recent years, with the firm previously saying that changes to expectations regarding financial resilience and increased regulation had “altered the economics of the sector”.
The group launched a review into its strategic options, ultimately deciding to move forward with a sale process.
It came after company accounts warned about a “material uncertainty” over its future following its failure to meet the targets.
Marc Spieker, chief operating officer commercial at E.On, previously said: “The United Kingdom is an important growth market for E.On, 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.
“At E.On, we are passionate about developing solutions that enable customers across Europe to play an active role in making our energy systems both reliable and affordable.”
