BIRMINGHAM (dpa-AFX) - Severn Trent Plc. (SVT.L) noted the publication of the summary opinion of employee representatives and recognised trade unions on the recommended acquisition of Dee Valley by Severn Trent and the Ancala response to that opinion.
Severn Trent said it has carried out detailed economic analysis which shows that the acquisition of Dee Valley will not prejudice the ability of Ofwat to make comparisons between water enterprises. This is the only question that the CMA is entitled to consider when assessing the impact of the acquisition.
Therefore, on the basis of the evidence that Severn Trent has shared with the CMA and Ofwat, Severn Trent said it is highly confident of achieving CMA clearance in Phase I and has already removed the voluntary condition for CMA Phase I clearance from its Revised Offer as a demonstration of its confidence.
Severn Trent believes it will be the best supportive long term owner of Dee Valley as the local water business for its area and will bring its expertise and financial strength to support the business, its customers, employees and pensioners.
Severn Trent said it understands that it is a possible time of uncertainty for the employees of Dee Valley and Severn Trent is keen to engage with them to address their possible concerns but the Dee Valley Board is not allowing access to them for the time being. Severn Trent looks forward to engaging with employees of Dee Valley, the Employee Forum and the Unite union in due course to seek to address their concerns.
Severn Trent's offer has the unanimous support of the Dee Valley Board which recommends all Dee Valley Voting Ordinary Shareholders vote in favour of Severn Trent's Scheme at the shareholder and court meetings to be held on 12 January 2017 and all Dee Valley Non-Voting Ordinary Shareholders accept the Severn Trent Contractual Offer.
Copyright RTT News/dpa-AFX