No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(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.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.