Pennon Group PLC (LSE:PNN, OTC:PEGRY) is set to get regulatory approval for its acquisition of Sutton and East Surrey Water (SES) after offering to provide separate financial data for the business.
Last week, competition watchdog the CMA said water regulator Ofwat would see a reduction in the number of comparators available for it to analyse cost allowances and decide quality targets if the deal went ahead.
Pennon owns South West Water, Bristol Water and Bournemouth Water already and acquired the holding company of SES for £380 million including debt in January.
The group, which oversees many of the country’s best beaches, has been slammed by environmentalists, swimmers and the Environment Agency for the levels of sewage in coastal waters after repeated dumping.
In a statement, the CMA said it "considers that there are reasonable grounds for believing that the undertakings offered by Pennon, or a modified version of them, might be accepted by the CMA to remedy the prejudice identified by the CMA”.