CMA kicks off Pennon/Bristol merger proceedings
by Karma Loveday
The Competition and Markets Authority has confirmed it will investigate Pennon Group’s completed acquisition of Bristol Water. It made an initial enforcement order on 15 June under section 72(2) of the Enterprise Act 2002.
As part of the work, the CMA is considering under section 22 of the Water Industry Act 1991 whether the merger has resulted or may be expected to result in a substantial lessening of competition.
In the meantime, the order prevents integration of the businesses and substantive changes to organisational and management responsibilities. It requires regular compliance assurance from both sides.
The merger inquiry will officially be launched when the CMA formally commences its Phase 1 investigation.
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