REG - Pennon Group PLC - CMA decision – Bristol Water merger

PennonAnnouncement

11/01/2022 07:10

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RNS Number : 9992X  Pennon Group PLC  11 January 2022

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:

 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, 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.

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