South West-based power supplier OVO Energy is to be acquired by German giant E.ON for an undisclosed sum, it has been confirmed.
The deal, which is subject to regulatory approval, is expected to be given clearance in the second half of this year. Financial details have not been disclosed.
It will create one of the UK’s largest energy groups with in the region of 10m customers and a market share of around 27%.
Speculation has been growing over recent days that E.ON was poised to pounce for OVO, which was launched in Bristol by entrepreneur Stephen Fitzpatrick in 2009.
The firm grew rapidly as a challenger to the industry’s dominant Big Six energy groups.
It acquired CORGI HomePlan nine years ago as it rapidly transitioned from a core energy supplier towards becoming an integrated-enabled energy services company.
That reached its peak in 2020 with its £500m takeover of SSE’s retail business, which added around 3.5m customers, taking its total to 5m. It also made it the UK’s second-largest energy supplier behind British Gas.
However, integration issues, tougher regulation and volatile wholesale markets have since impacted on OVO’s performance and it made a £135m loss in 2024.
Last year it warned of a “material uncertainty” over its ability to continue trading and, over recent months, it was said to be looking for a lifeline from a suitable buyer.
Chris Houghton, chief executive of OVO, said today: “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.
“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.”
Confirmation of E.ON’s acquisition came within an hour of OVO offloading its home services business, including CORGI HomePlan, to new industry challenger Hometree.
E.ON said taking over OVO represented a significant investment by the group into the UK market and was about accelerating consumer energy flexibility – “putting control in customers’ hands, bringing bills down and reshaping the energy system around people”.
Chris Norbury, CEO of E.ON UK, added: “For decades the UK energy system focused too much on those upstream.
“Now is our opportunity to change that. Solar, batteries, EVs and a retailer built to orchestrate. That is what this deal is about: customers in control and new energy that works for everyone.”
In a statement on its website, OVO is telling customers that nothing is changing for now.
It adds: “We’ve spent the past 16 years building OVO into one of the UK’s leading energy suppliers, helping millions of customers use less energy and make greener choices.
“Looking ahead, we believe being part of a larger energy group like E.ON is the best way to keep building on that and continue improving what we offer to customers over the long term.
“Before anything changes, the sale needs to go through a regulatory approval process. Until the deal completes, OVO and E.ON will continue to operate as separate businesses and everything stays as it is today.
“We know OVO matters to a lot of our customers, and we’re really proud of what we’ve built together over the years. Thank you for being part of that.”
