CMA clears E.On's takeover of Ovo without in-depth investigation
The Competition and Markets Authority will not refer E.On's purchase of Ovo for a detailed probe, clearing the way for a deal that would create the UK's largest electricity supplier.
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The story, neutrally told
Britain's Competition and Markets Authority (CMA) has cleared German group E.On's takeover of rival supplier Ovo. Evening StandardN “E.On’s takeover of rival Ovo has been given the green light by Britain’s competition watchdog” Read at Evening Standard ↗ Daily ExpressR “has been given the green light by Britain’s competition watchdog to acquire OVO Energy” Read at Daily Express ↗ The CMA said it would not refer the deal for an in-depth investigation, having looked at whether it would lessen competition in the energy market. Evening StandardN “It had been probing the tie-up to look at whether it would lessen competition in the energy market.” Read at Evening Standard ↗ E.On agreed to buy Ovo in May for an undisclosed sum, which reports suggested could be as much as £600 million. Evening StandardN “E.On agreed to buy Ovo in May for an undisclosed sum, though reports indicated that it could be as much as £600 million.” Read at Evening Standard ↗ Daily ExpressR “German energy provider E.On agreed to buy rival firm OVO in May for an undisclosed sum” Read at Daily Express ↗
E.On would add Ovo's four million customers to its existing 5.6 million, and the deal is expected to complete before the end of the year. Evening StandardN “The deal will see E.On add Ovo’s four million customers to its existing 5.6 million customers” Read at Evening Standard ↗ Ovo was founded by Stephen Fitzpatrick in 2009, and Mayfair Equity Partners invested in 2015. Evening StandardN “Ovo was founded by Stephen Fitzpatrick in 2009” Read at Evening Standard ↗ Daily ExpressR “Mayfair Equity Partners invested in the company in 2015.” Read at Daily Express ↗ Ovo had come under pressure; it said changes to financial resilience expectations and increased regulation had "altered the economics of the sector", and its accounts warned of a "material uncertainty" over its future before it chose a sale. Evening StandardN “It came after company accounts warned about a “material uncertainty” over its future” Read at Evening Standard ↗ Daily ExpressR “ultimately deciding to move forward with a sale process” Read at Daily Express ↗
The Daily Express added consumer guidance citing Citizens Advice: supply is usually not interrupted in a takeover, because distribution is handled by regional operators. Daily ExpressR “In most cases your gas and electricity supply won't be interrupted as distribution is handled by regional operators” Read at Daily Express ↗
Every sentence links to the reporting it rests on.
Left0 outlets
No left outlet in our sources has covered this story yet.
Centre1 outlet
- Framing
- Straight business report on the regulatory clearance, with background on Ovo's financial pressures.
- Emphasis
- The CMA decision, deal size and customer numbers, and Ovo's strategic review.
- Leaves out or plays down
- No consumer guidance on what customers should expect.
- For example
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“in a move paving the way for the deal to create the UK’s largest electricity supplier” — Evening Standard
Right1 outlet
- Framing
- Near-identical report of the clearance, framed for consumers with a headline on creating the UK's largest provider and practical advice at the end.
- Emphasis
- Scale of the combined supplier and what customers should expect.
- Leaves out or plays down
- No additional reaction from the CMA, E.On or Ovo.
- Charged language
- “Major energy firm”
- For example
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“Contact OVO Energy for any queries about your contract.” — Daily Express
What every side reports
- The CMA will not refer the E.On-Ovo deal for an in-depth investigation.
- E.On agreed to buy Ovo in May for an undisclosed sum, reportedly up to £600 million.
- The deal combines Ovo's four million customers with E.On's 5.6 million and is expected to complete before year end.
Competition and Markets Authority organisation
Decided not to refer the takeover for an in-depth investigation after examining its effect on competition.
“said it would not refer the takeover of Ovo by Germany’s E.On for an in-depth investigation” — Evening Standard
Ovo Energy organisation
Previously said regulation and financial resilience rules had changed the sector's economics, and moved to a sale after a strategic review.
“altered the economics of the sector” — Evening Standard
E.On organisation
Buying Ovo to add its customers to its own base, with completion expected before year end.
“it expected to complete before the end of the year” — Evening Standard
Left0 articles
No coverage yet.
Centre1 article
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E.On’s takeover of Ovo given all clear by competition watchdog
Neutral Concise news report of the CMA clearance with company background.
Right1 article
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Major energy firm to take over OVO to create 'UK's largest electricity provider'
Neutral Largely the same copy, with a headline stressing the 'largest electricity provider' and added customer advice.
- 1 Oct 07:52 First Evening StandardN E.On’s takeover of Ovo given all clear by competition watchdog
- 1 Oct 10:06 +2h 13m Daily ExpressR Major energy firm to take over OVO to create 'UK's largest electricity provider'
Times are when each article was published, or when we first saw it if the outlet gave no time.