CMA clears Bristol Water merger with South West Water

The CMA (Competition and Markets Authority) has today (March 7) published its clearance of the merger of Bristol Water with South West Water, following the acquisition announced in June 2021.

Pennon were given the all-clear for the merger in November, but the CMA announced shortly before Christmas the deal couldn’t go ahead over fears it would negatively affect Ofwat’s ability to regulate both companies, and Pennon should offer remedies to address the concerns.

Pennon confirmed this morning the undertakings proposed, which will maintain separate price controls for the Bristol Water region within a merged water business, have now been accepted.

Susan Davy, Pennon Group CEO, said: “The merger of Bristol Water with South West Water is all about bringing together the best of the best to deliver for our customers, communities, and the environment in the Greater South West.

“We have a track record of delivery and are working across both businesses to deploy our proven integration strategy, which we are confident will deliver meaningful benefits for all stakeholders.

“Alongside this, we are excited to further evolve our WaterShare+ unique customer share ownership scheme, offering Bristol Water customers a greater stake and say in the business.”