German energy giant Eon has finalized a deal to acquire UK-based Ovo, creating a new energy provider serving approximately 9.6 million households. The acquisition, finalized Monday, merges Eon’s 5.6 million UK customers with Ovo’s 4 million, positioning the combined entity to rival Octopus Energy as Britain’s largest supplier. Deal value estimates suggest a £550-£600 million transaction, driven by regulatory pressures and Ovo’s struggle to meet Ofgem’s capital adequacy rules. Ovo founder Stephen Fitzpatrick called it the “right step” for navigating a “more regulated, capital-intensive” market.

The merger excludes Ovo’s Kaluza platform, which Eon will continue licensing separately. Eon’s UK CEO Chris Norbury emphasized the deal’s focus on scaling infrastructure to support low-carbon energy transitions.