CMA indicates Pennon/SES deal to be cleared

The Competition and Markets Authority (CMA) has indicated Pennon Group has put forward sufficient remedies to offset the detriment arising from its acquisition of SES Water.

In a case update last week, the CMA said it considered that there are reasonable grounds for believing that the undertakings offered by the parties, or a modified version of them, might be accepted under the Water Industry Act 1991.

At the beginning of the month, the CMA said the merger has prejudiced or will prejudice Ofwat’s ability to make comparisons between water enterprises and that the deal would be referred for an in-depth investigation unless the parties offered acceptable undertakings to address the adverse impact of the merger on Ofwat’s system of comparative regulation.