Latest Bristol Water News
Jan 11, 2022
11 Jan 2022 South West Deals Matthew Ord Exeter-headquartered Pennon Group's £425m acquisition of Bristol Water looks set to move ahead after the Competition and Markets Authority (CMA) provisionally accepted undertakings put forward by Pennon to address concerns around the deal. Bristol Water Holdings UK, which comprises subsidiaries such as Bristol Water, was purchased from indirect shareholders, including infrastructure funds advised by iCON Infrastructure and ITOCHU Corporation. The deal was initially struck in June 2021. However, a CMA investigation was launched and in December the watchdog confirmed that it will be taking the issue to the next step. The parties had until 31 December 2021 to offer an undertaking that might be accepted. A statement from Pennon said it intended to do so. Now, the CMA has confirmed that there are "reasonable grounds that the undertakings offered by Pennon might be accepted by the CMA under the Water Industry Act 1991". Should this happen, the merger would be cleared without reference to a phase two 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," it said. "We will continue to work transparently and collaboratively with the CMA during this consultation process." Barclays Bank and Morgan Stanley & Co are advisers on the transaction.