CMA Publication of Phase 1 Merger Review Outcome

Bristol Water plc

RNS Announcement

CMA Publication of the outcome of its Phase 1 merger review in relation to the acquisition of Bristol Water plc by Pennon Group plc

Following the acquisition by Pennon Group plc (Pennon) of Bristol Water plc (Bristol Water) on 03 June 2021 (the Acquisition), the Competition and Markets Authority (CMA), with input from the Water Services Regulation Authority (Ofwat) commenced an investigation into the Acquisition, as required pursuant to the Water Industry Act 1991. 

Today, the CMA published the outcome of its Phase 1 merger review. As anticipated, during this phase of the review, the CMA considered whether the merger of Bristol Water with South West Water is likely to prejudice Ofwat's ability to make comparisons between water companies.

The CMA has confirmed its intention to pursue a Phase 2 merger review unless undertakings it considers to be acceptable are put forward by Pennon. In line with the CMA's guidance, the CMA will have until 10 January 2022 to reach a decision on whether to provisionally accept the proposed undertakings. Should those undertakings be provisionally accepted, in line with standard procedure, the CMA would then launch a consultation on those proposals.

Pennon has today announced its intention to offer appropriate undertakings by 31 December 2021.

Bristol Water plc (the Company)

22 December 2021