General Utilities PLC and the creation of Three Valleys Water

Monopolies and Mergers Commission report into the proposed acquisition of Colne Valley Water and Rickmansworth Water (which became Three Valleys Water) by General Utilities (which became Veolia). The Commission found that the then applicable statutory "principle that the number of water enterprises which are under independent control should not be reduced so as to prejudice [Ofwat's] ability [...] to make comparisons between [...] water enterprises" would be breached by the merger, creating a detriment to the public interest, but that the merger could be justified on the grounds of a benefit of "substantially greater significance" than the comparator principle if cost savings of £60 million arising from a full merger (creating Three Valleys Water) were passed through to consumers.

See Water mergers for background and other cases.

For further information or advice please contact Franck Latrémolière.

Filed under Competition Commission, Merger control, Price controls, Water.

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