E.ON has agreed a deal to acquire OVO Energy in a major shake-up of the UK energy market, with the value of the transaction remaining undisclosed.
The takeover is subject to regulatory approval, which both companies expect to secure during the second half of 2026.
Until the approval process is completed, both suppliers will continue operating independently.
The agreement includes OVO’s retail customer base and all employees supporting those customers.
OVO said the sale followed a review of its strategic options, with the company concluding that joining E.ON would provide the strongest long-term platform for the business and its customers.
The supplier said becoming part of a larger energy group would support continued investment in products and services designed to help households manage energy consumption and adopt low-carbon technology.
OVO has also agreed to sell its Home Services division to Hometree, subject to separate regulatory approval.
The Home Services arm provides boiler servicing and insurance products.
E.ON to acquire OVO Energy in major UK energy market takeover deal
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E.ON said the combined business would help accelerate the transition towards a more flexible and digitally focused energy system.
The company stated: “As the UK energy system evolves, flexibility will be central to keeping costs down and improving resilience.
“A larger, digitally native E.ON UK accelerates the shift to a customer-led energy system, making new energy work for everyone, not just for early adopters.”
Following completion of the acquisition, E.ON said it would continue using the existing energy intelligence platform licence agreement with Kaluza for OVO customers.
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