UK Competition Authority Clears E.On's Acquisition of Ovo, Creating Largest Power Supplier

Britain's competition authority has approved E.On's acquisition of Ovo, clearing the path for the merger to form the nation's largest electricity supplier. After a detailed probe into how the deal might affect market competition, regulators concluded it would not significantly reduce consumer choice. The transaction, first announced in May, involves an undisclosed price that reports suggest could be as high as £600 million.

Once finalized, E.On will combine its 5.6 million customers with Ovo's four million, and aims to close the deal before year-end. Ovo, launched by Stephen Fitzpatrick in 2009, grew into a major household energy provider and invested in greener-energy technology, but recent regulatory and financial challenges prompted a strategic review and sale process. The company had previously warned of a "material uncertainty" regarding its outlook.