• Swindon & Wiltshire M&A, deals
• Friday September 4 2026

Watchdog launches OVO takeover investigation

Mergers watchdog the Competition and Markets Authority has launched a formal investigation into German utility E.ON’s planned takeover of UK supplier OVO Energy, saying it will assess whether the deal would “result in a substantial lessening of competition” in Britain’s energy markets.

The inquiry, which opened on September 2, sets an October 28 deadline for the CMA’s phase‑one decision on whether to clear the merger, impose remedies or refer it for an in‑depth probe.

E.ON announced in May 2026 that it had signed an agreement to acquire OVO’s retail energy business for an undisclosed sum, while OVO’s home‑services arm is being sold separately to Hometree.

The companies have not disclosed the deal value, but the transaction is expected to create a supplier with almost 10 million customers by combining E.ON’s 5.6 million UK accounts with OVO’s roughly 4 million.

Industry data suggest the merged group would hold about 27 per cent of the domestic market, making it Britain’s largest energy supplier by customer numbers.

The CMA said it is examining whether removing OVO as an independent challenger would weaken competition on tariffs, switching incentives and innovation, particularly in smart and flexible energy products.

It has invited interested parties to submit evidence as part of its information‑gathering, having first issued an “invitation to comment” on July 8 before opening the formal inquiry in September.

For now, E.ON and OVO must remain operationally and legally separate pending clearance, with no immediate changes to customer tariffs or service.

E.ON’s UK chief executive Chris Norbury has indicated the deal includes a “case for synergies”, while declining to rule out job cuts as part of integrating the two businesses.

Analysts note that previous big‑supplier mergers in the UK have hinged on customer overlap and the combined book’s share of supply and metering relationships, factors likely to be central to the CMA’s assessment.

The outcome could reshape the “big supplier” landscape and influence future consolidation among mid‑tier rivals as the market adjusts to tighter capital rules under Ofgem.