REG - Pennon Group PLC - CMA clears Bristol Water merger

PennonAnnouncement

07/03/2022 09:45

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RNS Number : 8462D  Pennon Group PLC  07 March 2022

PENNON GROUP

7 March 2022

CMA clears Bristol Water merger with South West Water

The CMA has today published its clearance of the merger of Bristol Water with
South West Water, following the acquisition announced in June 2021.

Pennon Group plc is pleased that the undertakings proposed, which will
maintain separate price controls for the Bristol Water region within a merged
water business(( 1 )), have now been accepted.

We will continue to work collaboratively with Ofwat throughout the next steps
of the process as we seek to combine South West Water and Bristol Water into
one licence and business entity.

 

The combined entity will 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.

Susan Davy, Pennon Group CEO, said:

 

"The merger of Bristol Water with South West Water is all about bringing
together the best of the best to deliver for our customers, communities, and
the environment in the Greater South West.

We have a track record of delivery and are working across both businesses to
deploy our proven integration strategy, which we are confident will deliver
meaningful benefits for all stakeholders.

Alongside this, we are excited to further evolve our WaterShare+ unique
customer share ownership scheme, offering Bristol Water customers a greater
stake and say in the business."

The CMA's press release can be viewed here
(https://www.londonstockexchange.com/news-article/market-news/merger-update-pennon-bristol/15356251)
.

 

Further information will be provided in Pennon's trading update for the year
ending 31 March 2022 which will now be published on 12 April 2022, alongside a
spotlight presentation followed by a live Q&A conference call, hosted by
Susan Davy and Paul Boote.

 

Please register here: https://www.pennon-group.co.uk/investor-information
(https://www.pennon-group.co.uk/investor-information)

Conference call dial in details:

United Kingdom:                      020 3936 2999

All other locations:                   +44 20 3936 2999

Passcode:
527378

 

 For further information, please contact:

 Pennon Group plc                                    +44 (0)1392 443 168

 Paul Boote              Group Finance Director

 Jennifer Cooke          Head of Investor Relations

 Media Enquiries                                     +44 (0)207 251 3801

 James Murgatroyd        Finsbury

 Harry Worthington

 

Background

Pennon's acquisition of Bristol Water Holdings UK Limited completed on 2 June
2021 and in line with standard procedure, was referred to the CMA for review
under the Water Industry Act 1991.

In December 2021, Pennon proposed undertakings in lieu of a Phase 2
investigation which have now been accepted by the CMA.

The £425 million acquisition reflects c.16% growth in Regulatory Capital
Value.

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.

Bristol Water is a regulated water only company supplying drinking water to a
population of approximately 1.2 million people in the Bristol region.

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.

 

 1  Water business comprising South West Water and Bristol Water.

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