CMA gives green light to Severn Trent bid for Dee Valley Water
The Competition Markets Authority (CMA) has cleared Severn Trent Water's acquisition of Dee Valley Group following a first phase statutory investigation into the proposed takeover. There will be no second phase probe.
The competition watchdog had opened the first phase investigation on 29 November with a 27 January deadline. Had the CMA moved to a second phase investigation before the January shareholders meting to decide the outcome of the takeover bid, Severn Trent’s offer would have lapsed automatically under takeover rules.
The Dee Valley board announced that it was recommending the revised Severn Trent offer on 24 November. The rival bidder, investment manager, Ancala Fornia, said it had either acquired or held valid acceptances in respect more than 41.13% of the total voting shares at the first closing date.
The voting share offer and the non-voting share Offer are being extended and will remain open for acceptances until 3:00 p.m. on 29 December.
Managing partner of Ancala, Spence Clunie, was reported as saying: "By extending the revised Ancala bid we are ensuring that Dee Valley shareholders have a viable option which is deliverable, is free from any regulatory doubt and which, we believe, provides the best outcome for the company."