Linklaters advises E.ON on acquisition of OVO Energy

Linklaters has advised the European utilities giant, E.ON, on its acquisition of the UK retail energy supplier, OVO Energy. The proposed transaction will result in the formation of the UK’s leading retail energy supplier. 

Under the terms of the transaction, E.ON has agreed to acquire the entire OVO Energy business, comprising approximately four million UK retail energy customers. In addition, E.ON has committed to servicing those customers post-completion through the Kaluza software platform, requiring the negotiation of a bespoke licencing arrangement to facilitate the provision of Kaluza’s energy intelligence and optimisation software. The Linklaters team also advised on market access for the OVO Energy business through power and gas supply arrangements as well as hedging structures that will come into place when the acquisition completes. 

The high-profile transaction represents yet another interesting chapter in the UK energy sector, and further strengthens Linklaters’ position as a leader in this space. Linklaters has consistently been part of the UK retail energy story, having advised on a number of the most significant transactions in the market, including the special administration and sale of Bulb Energy, the separation of the Kraken energy technology platform from Octopus, as well as Kraken’s US$1bn funding round. 

The deal team was led by Chris Staples and Patrick Fincham, with Natura Gracia and Sima Ostrovsky advising on regulatory and anti-trust matters. Georgina Kon led the negotiation of the licencing arrangements with the Kaluza technology platform, with Thomas Chappatte leading on market supply and access. Sam Lintonbon advised on tax aspects of the transaction. 

Chris Staples, Corporate Partner said:
 

“We were very pleased to support E.ON in this landmark transaction for the UK energy sector. Linklaters has played a leading role in many of the transactions that have shaped the UK’s energy infrastructure, and our market-leading platform means we are ideally positioned to offer the complex, cross-practice advice that these types of transactions require.”