E.ON agrees to buy Ovo in deal to create UK’s biggest energy supplier
Summary
The German energy company E.ON has agreed to buy the UK energy supplier Ovo, creating the biggest gas and electricity provider in Britain with about 9.6 million customers. The deal aims to improve services and reduce energy bills while waiting for approval from regulators later this year.Key Facts
- E.ON will buy Ovo, combining their customers to serve around 9.6 million households in the UK.
- The deal’s value was not officially announced but is reported to be about £600 million.
- The new company will be larger than Octopus, the current biggest UK energy supplier with nearly 8 million customers.
- Both E.ON and Ovo will keep their current services and prices until the deal is approved, expected in the second half of the year.
- Ovo will sell its home services business (boiler insurance and servicing) to Hometree as part of the deal.
- Ovo has faced financial problems recently, including failed stress tests and job cuts.
- E.ON believes a larger customer base will allow more investment in technology and help the UK’s shift to cleaner energy.
- Both companies use smart meters and digital tools to help customers manage energy use and reduce costs.
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