The competition watchdog has given the green light to Ovo Energy’s £500m takeover of rival supplier SSE’s retail arm.
In a statement this morning the Competition and Markets Authority (CMA) said the deal, which will create the UK’s second-largest energy supplier, would not harm competition.
In September Big Six energy supplier SSE agreed to sell its consumer business to Ovo for £400m in cash and £100m in loan notes.
The CMA opened an initial inquiry the following month, but today confirmed the deal will not be referred for an in-depth phase two investigation.
“We’re delighted with the CMA’s decision and look forward to bringing SSE into the Ovo family,” said Ovo founder and chief executive Stephen Fitzpatrick.
“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 mega-merger marks a huge expansion for challenger firm Ovo, which is the UK’s largest independent supplier. Ovo will take over SSE’s 3.5m customers, in addition to roughly 8,000 employees.
SSE has said it will do “all it can to ensure a smooth transition for customers and employees”.
The deal is expected to complete in January 2020.