E.ON acquires OVO Energy for undisclosed sum

E.ON has reached a deal to acquire OVO Energy for an undisclosed sum.

The deal, which is subject to regulatory approval, is expected to be given clearance in the second half of 2026.

The tie-up would make E.ON one of the UK’s biggest energy providers, with around 10m customers and a market share of around 27 per cent, eclipsing the market share of Octopus Energy.

“As the UK energy system evolves, flexibility will be central to keeping costs down and improving resilience,” E.ON said in a statement.

“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.”

OVO’s future had been in doubt since the energy company, founded by entrepreneur Stephen Fitzpatrick, last year warned there was a “material uncertainty” over its ability to continue trading.

The firm, which has around 4m customers across the UK, was told by energy regulator Ofgem it failed to meet new financial resilience standards put in place after the collapse of a number of energy suppliers following a spike in prices in 2022.

OVO is understood to have been on the lookout for a rescue buyer for a number of months in a bid to turn around the company’s fortunes. Collapsing into a Special Administration Regime (SAR) was a possibility if a buyer could not be found.

“OVO was founded to challenge the status quo, and we’ve built a strong retail business focused on delivering for customers and supporting the transition to cleaner energy,” said Chris Houghton, chief executive of OVO.

“As the market has evolved, scale and access to significant long-term capital for the energy transition have become non-negotiable. Following a thorough review, we believe this decision gives the business the strongest footing for the future.”