E.ON: We view OVO Energy transaction positively

Research evidence excerpt

E.ON: We view OVO Energy transaction positively

Equity Research

European Utilities & Clean Energy

11 May 2026

E.ON

We view OVO Energy transaction

positively

E.ON’s OVO acquisition adds ~4m UK customers, EONGn.DE/EOAN GY EQUAL WEIGHT

POSITIVEstrengthening scale in UK energy retail (taking total UK EuropeanEnergy Utilities & Clean

customers to ~9.6m / #1). We view the deal favourably given Price Target EUR 19.00

E.ON’s UK turnaround track record, attractive valuation, Price (08-May-26) EUR 17.92 Potential Upside/Downside +6.1%

Source: Bloomberg, Barclays Researchsynergy scope and management’s guidance for earnings, cash

flow & EPS accretion.

Peter Crampton

E.ON has announced an agreement to acquire UK energy supplier OVO. This follows +44 (0)20 3555 0125

previous press articles that this transaction was imminent. The transaction adds ~4m customers peter.crampton2@barclays.com

to E.ON’s existing 5.6mn UK base (taking total UK customers to ~9.6m / #1). According to E.ON, Barclays, UK

strategically the deal expands its customer-centric, digital and flexibility-focused offering, with Dominic Nash, PhD

the combined group benefiting from strong smart meter penetration, scale advantages and +44 (0)20 3134 2364

broader scope to roll out innovative electricity, heating and e-mobility solutions across Europe. dominic.nash@barclays.com

E.ON management highlighted the transaction as a rare opportunity to acquire a large portfolio Barclays, UK

in a saturated market, with expected economies of scale and stronger UK market positioning. Laura Marconi

Importantly, E.ON sees the transaction as earnings and cash flow accretive with a short payback +44 (0)20 3555 0762

period. It also improves financial headroom, with a positive EPS contribution expected by 2030, laura.marconi@barclays.com