A major energy firm has been given the green light by Britain’s competition watchdog to acquire OVO Energy in a move paving the way for the deal to create the UK’s largest electricity supplier. German energy provider E.On agreed to buy rival firm OVO in May for an undisclosed sum, though reports indicated that it could be as much as £600 million.
The Competition and Markets Authority (CMA) has now said it would not refer the takeover of OVO by Germany’s E.On to an in-depth investigation. It had been probing the tie-up to look at whether it would lessen competition in the energy market. The deal will see E.On add OVO ’s four million customers to its existing 5.6 million customers and it expected to complete before the end of the year.
OVO was founded by Stephen Fitzpatrick in 2009 and has since expanded to become one of the UK’s largest household energy suppliers, while also developing technology to enable greener energy use.
Mayfair Equity Partners invested in the company in 2015.
But the provider has come under pressure in recent years, with the company previously saying that changes to expectations regarding financial resilience and increased regulation had “altered the economics of the sector”.
The group launched a review into its strategic options, ultimately deciding to move forward with a sale process.
It came after the company’s accounts warned of a “material uncertainty” over its future following its failure to meet the targets.
Citizens Advice explains that when one energy is being sold or changing their name, they’ll contact customers informing them of:
- the name of your new supplier
- when your account will be moved to the new supplier
In most cases your gas and electricity supply won’t be interrupted as distribution is handled by regional operators, rather than the company itself.
The providers handle the switchover, and your contract should be moved over to the new owners.
Contact OVO Energy for any queries about your contract.
