Pennon Group PLC - Exeter, England-based water utility - The UK Competition & Markets Authority sees ‘reasonable grounds’ to clear Pennon’s acquisition of Sutton & East Surrey Group Holdings Ltd, formerly named Sumisho Osaka Gas Water UK Ltd. Pennon agreed to the deal, which has an enterprise value of £380 million including debt, in January. The CMA launched a phase 1 merger inquiry into the deal in March and earlier this month said the deal could face a deeper investigation should ‘acceptable’ undertakings not be made by Pennon. On Tuesday, the competition regulator says Pennon has offered to provide reporting for Sutton & East Surrey Water separate from the rest of Pennon. This could address the CMA’s concern that the merger will harm water regulator Ofwat’s ability to make comparisons between water utilities. The CMA now has until July 16 to decide whether or not to accept Pennon’s undertakings.
Current stock price: 727.50 pence, up 2.3% in London on Tuesday
12-month change: down 15%
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