Scandal-hit water agency Pennon’s £380m buy of rival raises concern
A water firm fined for unlawful sewage dumping has splashed out £380million on shopping for a rival regardless of strain to put money into stopping leaks and air pollution.
Pennon, which owns South West Water and lately acquired Bournemouth Water and Bristol Water, has purchased Sutton and East Surrey (SES) Water from its Japanese homeowners.
Industry regulator Ofwat final 12 months named SES, which has £291million of debt and provides 750,000 prospects in south-east England, among the many 4 worst performing water firms financially.
But South West Water has additionally come beneath fireplace for its efficiency and was final 12 months fined £2.15million for unlawful sewage spills in Devon and Cornwall.
Chief govt Susan Davy mentioned: ‘SES Water is a fantastic fit for Pennon as we further expand our presence in water supply.’
Chief govt Susan Davy (pictured) mentioned: ‘SES Water is a fantastic fit for Pennon as we further expand our presence in water supply’
The industry has faced sustained criticism over high levels of debt, leaks and sewage spills, with operators under pressure to invest in infrastructure.
Pennon is raising £180million from shareholders to help fund the takeover.
The plan to buy SES from Sumitomo Corporation and Osaka Gas must be approved by regulators at the Competition and Markets Authority with input from Ofwat.
Russ Mould, investment director at AJ Bell, said: ‘Pennon’s choice to spend £380million could increase eyebrows.’
