Last checked at 11 Jan 2022 07:07
PENNON GROUP
11 January 2022
CMA decision - Bristol Water merger
Further to Pennon's announcement on 22 December 2021, the Competition and Markets Authority ("CMA") has announced that it considers there are reasonable grounds that the undertakings offered by Pennon might be accepted by the CMA under the Water Industry Act 1991. Should undertakings be accepted by the CMA, this would enable the merger with Bristol Water to be cleared without reference to a phase 2 merger review.
In line with standard procedure, the CMA has confirmed that it will launch a consultation on the undertakings put forward by Pennon, which is expected to conclude by 7 March 2022. We will continue to work transparently and collaboratively with the CMA during this consultation process.
For further information, please contact:
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Pennon Group plc
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Paul Boote | Group Finance Director |
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Jennifer Cooke | Head of Investor Relations |
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Media Enquiries
| +44 (0)207 251 3801 | |
James Murgatroyd | Finsbury |
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Harry Worthington |
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Background
Pennon's acquisition of Bristol Water Holdings UK Limited completed on 2 June 2021 and in line with standard procedure, is subject to CMA review under the Water Industry Act 1991.
On 22 December 2021, Pennon announced its intention to offer appropriate undertakings in lieu of a Phase 2 merger review, by 31 December 2021. These undertakings proposed to maintain separate price controls for the Bristol Water region within a merged water business[1]. This combined entity would enable the most effective and efficient delivery of services for customers in all the regions served by the Pennon Group, whilst also providing Ofwat with comparative cost and performance data.
The Non-Household element of the acquisition was referred under the provisions of the Enterprise Act 2002 and was unconditionally cleared on 5 November 2021.
About Pennon
Pennon is a UK-focused water infrastructure group, comprising South West Water (incorporating Bournemouth Water), Bristol Water and Pennon Water Services.
South West Water
South West Water provides water and wastewater service to a population of c.1.8 million in Cornwall, Devon and parts of Dorset and Somerset, and water only services to c.0.5 million in parts of Dorset, Hampshire and Wiltshire.
Bristol Water
Bristol Water is a regulated water only company supplying drinking water to a population of approximately 1.2 million people in the Bristol region.
[1] Water business comprising South West Water and Bristol Water.