Competition watchdog sounds alarm over Pennon’s takeover of Sutton and East Surrey Water

Economy
By Liam
  • Pennon already owns South West Water, Bristol Water and Bournemouth Water

By city and financial reporter

Updated:

The competition watchdog has raised the alarm over Pennon’s takeover of Sutton and East Surrey Water.

In yet another setback for the debt-ridden industry, the Competition and Markets Authority (CMA) said the deal could undermine Ofwat’s authority as water regulator by erasing SES from its data set.

This would make it more difficult to compare companies, affecting the ability to estimate cost reimbursements and set service quality targets.

Alert: Pennon, which already owns South West Water, Bristol Water and Bournemouth Water, is run by CEO Susan Davy (pictured)

Pennon, which already owns South West Water, Bristol Water and Bournemouth Water, is led by chief executive Susan Davy. There is until May 13 to respond.

FTSE 250-listed Pennon bought Sumisho Osaka Gas Water UK, including subsidiary SES Water, for £380m in January.

The investigation comes at a torrid time for the water industry, with operators under scrutiny in recent months over a sewage discharge scandal.

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