Susan Davy, CEO of Pennon, acknowledged the CMA’s decision and expressed commitment to ensuring the deal undergoes rigorous scrutiny. “It is vital that our stakeholders are assured of the benefits and trust the outcomes of this acquisition,” she stated. Davy also referred to Pennon’s previous experience with regulatory processes during their acquisition of Bristol Water, suggesting confidence in resolving the current concerns.
UK Cites Regulatory Fears Over Utility’s £89M Water Biz Buy: The Broader Impact
Pennon’s acquisition of Sumisho Osaka Gas Water, from its Japanese parent companies Sumitomo Corp. and Osaka Gas for £89 million in January, has significantly broadened its market scope. The addition of Sutton and East Surrey’s customer base would increase Pennon’s reach to approximately 4.3 million customers across its various subsidiaries, including South West Water and Pennon Water Services.
As this acquisition moves forward under regulatory scrutiny, the market watches closely. Pennon’s shares, which saw a 1.4% increase to close at 695 pence on the announcement day, reflect a cautiously optimistic outlook from investors about the deal’s potential and its alignment with regulatory expectations.
