Pennon Group plc / Bristol Water Holdings UK Limited merger inquiry

The CMA has investigated the completed acquisition by Pennon Group plc of Bristol Water Holdings UK Limited under the provisions of the Enterprise Act 2002 and the Water Industry Act 1991.

From:
Competition and Markets Authority
Published
21 June 2021
Last updated
11 March 2022 — See all updates
Case type:
Mergers
Case state:
Closed
Market sector:
Utilities
Outcome:
Mergers - phase 1 clearance with undertakings in lieu
Opened:
21 June 2021
Closed:
7 March 2022

Phase 1

Statutory timetable – Enterprise Act 2002

Date Action
5 November 2021 Decision announced
17 September 2021 to 1 October 2021 Invitation to comment
17 September 2021 Launch of merger inquiry
15 June 2021 Initial enforcement order

Statutory timetable – Water Industry Act 1991

Date Action
7 March 2022 Undertakings in lieu of reference accepted
22 December 2021 Decision announced
17 September 2021 to 1 October 2021 Invitation to comment
27 October 2021 Launch of merger inquiry
15 June 2021 Initial enforcement order

Undertakings in lieu of reference accepted

7 March 2022: The CMA has accepted undertakings in lieu of reference for the completed acquisition by Pennon Group plc of Bristol Water Holdings UK Limited.

Undertakings in lieu of reference consultation: now closed

14 February 2022: We are consulting on proposed undertakings in lieu of a reference for the completed acquisition by Pennon Group plc of Bristol Water Holdings UK Limited.

CMA to consider undertakings offered

11 January 2022: The CMA considers there are reasonable grounds for believing that the undertakings offered by Pennon, or a modified version of them, might be accepted by the CMA under the Water Industry Act 1991.

Reference unless undertakings accepted

22 December 2021: The CMA has decided, on the information currently available to it, that it is or may be the case that the following Merger has prejudiced or is likely to prejudice Ofwat’s ability, in carrying out its functions, to make comparisons between water enterprises under the Water Industry Act 1991. This merger will be referred for a phase 2 investigation unless the parties offer acceptable undertakings to address the adverse impact of the Merger on Ofwat’s system of comparative regulation.

CMA clearance decision

5 November 2021: The CMA has cleared the completed acquisition by Pennon Group plc of Bristol Water Holdings UK Limited under the provisions of the Enterprise Act 2002.

Launch of merger inquiry

17 September 2021: The CMA announced the launch of its merger inquiry under the Enterprise Act 2002 by notice to the parties.

27 October 2021: The CMA announced the launch of its merger inquiry under the Water Industry Act 1991 by notice to the parties.

Invitation to comment: closed

17 September 2021: The Competition and Markets Authority (CMA) is considering pursuant to section 32(b) of the Water Industry Act 1991 (WIA91), whether it is or may be the case that a merger of two or more water enterprises has taken place and, if so, whether the creation of that situation is likely to prejudice Ofwat’s ability, in carrying out its functions, to make comparisons between water enterprises.

In addition, the CMA is also considering whether it is or may be the case that this transaction has resulted in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

To assist it with this assessment, the CMA invites comments on the transaction from any interested party.

Initial enforcement order

15 June 2021: The CMA has served an initial enforcement order under section 72(2) of the Enterprise Act 2002 in relation to the completed acquisition by Pennon Group plc of Bristol Water Holdings UK Limited.

Amendments/consents granted

Contact

Please send written representations about any competition or public interest to:

James McGarrachan
Competition and Markets Authority

James.McGarrachan@cma.gov.uk

Published 21 June 2021
Last updated 11 March 2022 + show all updates

  1. Full text decisions for merger clearance and acceptance of undertakings in lieu published.

  2. Undertakings in lieu of reference accepted.

  3. Launch of consultation on undertakings offered.

  4. Decision to consider undertakings offered published.

  5. Decision to refer unless undertakings accepted published.

  6. Phase 1 clearance decision announced and variation order published.

  7. Commencement notice and derogation published.

  8. Launch of Phase 1 investigation and invitation to comment published.

  9. Derogation published.

  10. Derogations published.

  11. First published.