(Sharecast News) - Pennon Group updated the market on the Competition and Markets Authority's phase one review of the merger of Bristol Water with its South West Water division on Wednesday, after the regulator confirmed its intention to pursue a phase two merger review unless acceptable undertakings were put forward by Pennon.
The FTSE 250 utility operator said that, in line with the CMA's guidance, the competition watchdog would have until 10 January to reach a decision on whether to provisionally accept any proposed undertakings.
Should they be provisionally accepted, in line with standard procedure, the CMA would then launch a consultation on those proposals.
"Pennon intends to offer appropriate undertakings by 31 December," the company's board said in its statement.
"The proposed undertakings would seek to maintain separate price controls for the Bristol Water region within a merged water business.
"This combined entity would enable the most effective and efficient delivery of services for our customers in all the regions we serve, whilst also providing Ofwat with comparative cost and performance data."
At 0956 GMT, shares in Pennon Group were down 0.43% at 1,166p.
Pennon (PNN)14 Jun 2024 12:35
CMA clears Pennon's Sutton & East Surrey Water and South West merger
(Sharecast News) - Water utility company Pennon has received the green light from the UK's competition watchdog for the proposed merger of Sutton & Ea...
