Ovo takeover of SSE gets go-ahead

Energy provider Ovo’s David and Goliath £500 million takeover of giant SSE today won the approval of competition regulators.

The deal paves the way for Ovo, which is only a decade old, to supply around one in five UK homes, totalling around five million customers.

At the time of the deal announcement in September, it was predicted the combination would create a new number two behind British Gas. However, shortly afterwards, troubled Npower’s takeover by Eon completed, taking the number two spot.

Stephen Fitzpatrick, the entrepreneur who founded Ovo, wants to use his new technology to improve the service in what is becoming an increasingly data-driven industry.

He said: “There is a lot of work to be done, but we’re excited about the challenge ahead and the opportunity to help even more customers on the journey to zero carbon.”

The relatively low price Ovo paid for SSE was seen as showing the troubled state of Britain’s energy markets.

Eon recently launched a bloody job- cutting programme to stem Npower’s massive losses in a potentially disruptive programme that could leave the path clearer for Ovo to make faster gains when it begins integrating SSE.

After today’s green light from the Competition and Markets Authority, Ovo’s deal should complete next month.