The competition watchdog has given OVO Energy the green light for the takeover of SSE Energy Services in a deal worth £500 million.

The approval follows the Competition and Markets Authority’s (CMA) investigation into the deal that will see OVO buy SSE’s household energy and related services business.

OVO says the acquisition – expected to be completed in January 2020 – will accelerate its ambition to provide “clean, affordable energy for everyone”.

The deal will make OVO Energy one of the biggest suppliers in Britain as SSE’s 3.5 million household customer accounts will be taken over by OVO, which already has around 1.5 million customers.

Both companies will continue to operate independently as separate entities and serve their respective customers until the transaction is completed..

OVO CEO and Founder Stephen Fitzpatrick said: “We’re delighted with the CMA’s decision and look forward to bringing SSE into the OVO family.

“There is a low 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.”