Merger Update: Pennon / SES

"CMA to consider undertakings offered"

COMPLETED ACQUISITION BY PENNON GROUP PLC OF SUMISHO OSAKA GAS WATER UK LIMITED (NOW SUTTON AND EAST SURREY GROUP HOLDINGS LIMITED)

On 3 May 2024, the CMA decided, on the information currently available to it, that it is or may be the case that this merger has prejudiced or will prejudice Ofwat's ability to make comparisons between water enterprises.

On 3 May 2024, Pennon Group plc (Pennon) offered undertakings in lieu of a reference to the CMA. Pennon has offered to provide separate reporting information for Sutton and East Surrey Water plc from the rest of Pennon's water businesses post-Merger. The CMA considers that there are reasonable grounds for believing that the undertakings offered by Pennon, or a modified version of them, might be accepted by the CMA to remedy the prejudice identified by the CMA.

The CMA now has until 16 July 2024 to decide whether to accept the undertakings, with the possibility to extend this timeframe to 11 September 2024 if it considers there are special reasons for doing so.

The text of this decision will be placed on the Competition and Market Authority's web site at Pennon / Sumisho Osaka Gas Water UK merger inquiry as soon as is reasonably practical.

In the event of media enquiries please email Press@cma.gov.uk