German energy giant EON SE is acquiring the retail arm of Ovo Energy Ltd to create the largest electricity supplier in the United Kingdom.

The acquisition represents a significant consolidation of the British energy market, potentially altering the competitive landscape for millions of domestic consumers.

EON said the deal on Monday, with completion expected in the second half of 2026 [2]. The transaction is valued at up to £600 million [1], though some reports indicate the firms have not officially disclosed the final figure [2]. As part of the agreement, the founder of Ovo is expected to receive a payday of £300 million [2].

The merger will combine the existing operations of both companies to form a massive entity. This combined UK customer base will include roughly 9.6 million households [1]. By absorbing Ovo's retail customers, EON aims to increase its market share and solidify its position as the dominant provider in the region [1].

Industry analysts said the move could give EON a commanding grip on the domestic sector. The deal could result in a potential market share of about 27% of the UK domestic electricity supply [3]. This level of concentration may draw scrutiny from regulatory bodies tasked with ensuring fair pricing, and competition within the energy sector.

The deal comes as the UK energy market continues to evolve following years of volatility. By scaling its operations through this acquisition, EON intends to leverage a larger customer base to improve efficiency, and expand its reach across Britain [1].

“The deal could result in a potential market share of about 27% of the UK domestic electricity supply.”

This acquisition signals a shift toward market consolidation in the UK energy sector. By controlling over a quarter of the domestic electricity supply, EON gains significant pricing power and operational leverage. This may lead to increased regulatory oversight to prevent a monopoly and ensure that the combined entity does not stifle competition or negatively impact consumer costs.