UK competition regulator launches merger inquiry into E.ON-OVO deal

(Sharecast News) - The UK competition regulator announced on Wednesday that it has launched a merger inquiry into the proposed acquisition by E.ON of OVO Energy. The deal, which will see the combined utility group supply nearly 10m customers across the UK, is being investigated to assess whether it would result in a substantial lessening of competition.

E.ON already supplies 5.6 million customers, while OVO supplies a further 4 million.

The Competition and Markets Authority invited comments from "interested parties" between 8 and 23 July, and has now officially launched a phase one probe.

The CMA said the deadline for the phase-one decision has been set for 28 October. "Whilst the CMA will seek to determine its investigation as quickly as possible, the statutory deadline can be extended in certain limited circumstances," the regulator said.

"This customer base in a highly developed and dynamic market environment enables E.ON to develop innovative energy solutions and scale them across Europe," E.ON said in a statement at the time of the deal in May.