Overview
- The Competition and Markets Authority said on Thursday it will not refer E.ON’s takeover of Ovo for a deeper investigation, removing the main regulatory barrier to the deal.
- If completed, the acquisition will combine Ovo’s roughly four million customers with E.ON’s 5.6 million, creating a company that serves about 9.6 million UK customers.
- E.ON and Ovo announced the agreement in May for an undisclosed sum, with media reports since suggesting the purchase price could be as high as £600 million.
- Ovo’s decision to enter a sale process followed its accounts warning of a 'material uncertainty' and the company saying higher expectations on financial resilience and regulation had changed the sector’s economics.
- E.ON expects to complete the transaction before year-end and says customers should see no immediate changes to supply, tariffs, or account handling while the two firms continue to operate separately.