CMA clears Severn Trent takeover of Dee Valley
The Competition and Markets Authority (CMA) has given the green light to the acquisition of Dee Valley Water by Severn Trent, which is currently being voted on by shareholders.
The CMA confirmed it had concluded its first phase statutory investigation into the proposed takeover and was satisfied, with no second phase investigation necessary.
The takeover offer, which values Dee Valley Water at £84M, was recommended by Dee Valley’s board on November 24, but the outcome will not be confirmed until a shareholders’ meeting in January. However, the CMA decision removes one possible obstacle to the deal.
Severn Trent’s offer of £18.25 per share is the highest on the table for Dee Valley after a bidding war broke out for the Wrexham-based company with investment firm Ancala Fornia. Ancala’s final offer, which is also still open to shareholders, valued the target company at £78.5M.
Severn Trent has that its takeover would “provide a very successful outcome for the customers of Dee Valley” and that it intends to “enhance the current customer service offering”, including the extension of support for vulnerable customers.
However, Ancala has argued that its deal would preserve the local nature of the water company and guard against possible job losses.
Shareholders have until December 29th to vote and the outcome will be confirmed in January.
- Cable management system provides solution for Severn Trent grit A new cable management system has proved the key to the more effective dredging of grit at a sewage treatment works... Read More >
- RPS Group snaps up Clear Environmental Consultants RPS Group has acquired Clear Environmental Consultants - a move which is expected to strengthen the group's ability to... Read More >
- Environmental NGOs, water companies create Blueprint for Water Twenty environmental NGOs, co-ordinated by Blueprint for Water, and nine water companies have pulled together to create a... Read More >
- Meeting AMP7 leakage targets Damian Crawford, head of smart networks & leakage at Stantec, discusses how becoming data-rich and knowledge-smart can... Read More >
- Rewarding excellence WWT content director Alec Peachey looks ahead to next year's Water Industry Awards. Read More >
- Delivering a smart network Tom Mills, senior director UK&I at Sensus, examines what a smart water network really means - and how to get there. Read More >
- A watershed moment for the water industry? Tessa Harding, director of water at Thomson Environmental Consultants, discusses the government's Environment Bill. Read More >
- AMP7: putting the customer centre stage 2020 marks the beginnings of a new chapter for clients and contractors in the water industry with the start of AMP7, the... Read More >