UK competition watchdog flags regulatory concerns over Pennon-SES deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 03 2024
0mins
Source: Yahoo Finance
- Competition Concerns: Britain's competition watchdog, CMA, expressed concerns that Pennon Group's acquisition of SES Water could impact the ability to compare water companies.
- Regulatory Impact: The deal might affect Ofwat's authority as a water regulator for England and Wales by reducing the number of comparators available for cost estimates and service quality targets.
- Investigation Possibility: CMA will refer the deal to an in-depth investigation unless Pennon provides acceptable undertakings by May 13.
- Acquisition Details: Pennon acquired SES Water's holding company in January for £380 million, expanding its services to the region.
- SES Water Profile: SES Water is a drinking water supplier in the South East, serving around 745,000 customers daily across multiple regions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
