Pennon Group PLC has announced that the Competition and Markets Authority (CMA) has completed its Phase 1 merger review following Pennon's acquisition of Sumisho Osaka Gas Water UK Limited, which includes Sutton and East Surrey Water (SES Water) and other ancillary businesses. The CMA has been assessing whether the acquisition could prejudice Ofwat's ability to compare water companies, potentially leading to a Phase 2 review. Pennon has agreed to offer undertakings to the CMA by 13 May 2024 to address any concerns. If accepted, the CMA will launch a consultation on the proposals.
Susan Davy, Group CEO, expressed confidence in offering compelling undertakings to address the CMA and Ofwat's concerns and ensure that the benefits of the acquisition are delivered to all customers and stakeholders. The acquisition, completed on 10 January 2024, is subject to CMA review under the Water Industry Act 1991.
Pennon Group PLC is a UK-focused environmental infrastructure group, comprising South West Water, Pennon Water Services, Pennon Power, a stake in Water2Business, and now including SES Water and other ancillary businesses. South West Water provides water and wastewater services to approximately 3.5 million people across nine counties in the South West, managing over 870 million litres of drinking water daily and a vast sewer network.
Pennon Water Services, a venture with South Staffordshire Plc, offers retail water and wastewater services to non-household customer accounts across England and Scotland. Water2Business, a venture with Wessex Water, provides similar services to non-household accounts across England and Scotland. The company is committed to delivering long-term, sustainable growth.
For further information, please contact Pennon Group plc.