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IN BRIEF: UK CMA starts merger inquiry into Pennon acquisition

7th Mar 2024 14:30

Pennon Group PLC - Exeter, England-based water utility - The UK Competition & Markets Authority announces start of investigation into Pennon's acquisition of Sutton & East Surrey Group Holdings Ltd, formerly named Sumisho Osaka Gas Water UK Ltd. Pennon agreed to the deal, which has an enterprise value of GBP380 million including debt, in January. The inquiry's launch follows the CMA on February 27 inviting comments on the acquisition agreement.

The CMA's investigation is considering whether the deal constituted a merger of two or more water enterprises and, if so, whether this is likely to prejudice water authority Ofwat's regulatory abilities. The CMA says it has notified the parties, and will announce a phase 1 decision by May 7.

Current stock price: 704.00 pence, up 3.2% on Thursday afternoon

12-month change: down 17%

By Emma Curzon, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.


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