Pennon bought Sumisho Osaka Gas Water UK, including its subsidiary SES, in January for £380 million.
SES supplies drinking water to south-east England, with about 845,000 customers across east Surrey, West Sussex, west Kent and south London.
Joel Bamford, executive director of mergers at the CMA, said: “We’re concerned that this deal could impact Ofwat’s ability to make comparisons and carry out its role of regulating the water sector.”
Pennon was given until 13 May to respond to the CMA’s concerns.
The CMA said it would start a new investigation into the deal unless it accepts the company’s response.
Ms Davy says the Pennon is “confident” it will “be able to offer a compelling package of undertakings that will fully address the CMA and Ofwat’s concerns” while ensuring benefits of the acquisition for stakeholders.
Credit: Source link
