Bournemouth Water Integration

Plans to merge Bournemouth Water with South West Water were given unconditional clearance by the Competition and Markets Authority (CMA) in November 2015. The merger became official on 1 April 2016 and the integration process has been progressing well with a new management structure in place. During K6 (2015-2020) c.£27 million of synergies (net of restructuring costs) is set to be achieved through a combination of:

• the merging of the two companies’ wholesale and retail operations
• the creation of a single, centralised support function
• the sharing of best practice to form common systems and processes
• supply chain efficiencies.

A new single legally separate company, Pennon Water Services, has been created which will provide retail and water management services for our c.85,000 non-household customers, who will be eligible for the new water retail market in 2017. The new market will move into a period of shadow operation in October 2016 prior to formal opening in April 2017.

Documentation

05 Nov 2015

CMA clears Bournemouth Water acquisition and subsequent merger with South West Water

30 Sep 2015

Press Release: Provisional clearance of Bournemouth Water merger from CMA

03 Jul 2015

Press Release: Initial Submission to the CMA

Initial Submission to the CMA

16 Apr 2015

Results of Placing of New Ordinary Shares

Proposed Placing of New Ordinary Shares

Acquisition of Bournemouth Water from Sembcorp Holdings Limited