Severn Trent has responded to a rival takeover bid for Dee Valley Water by  investment firm Ancala Fornia by increasing its initial offer which valued Dee Valley at £78.5 million to £84 million.

Last month investment company Ancala Fornia Ltd, which has a focus on investing in the UK infrastructure sector, offered £71.3 million for Dee Valley, subsequently increased this week to £78.5 million.

A statement issued by Dee Valley commenting on the Ancala offer said:

“The revised Ancala bid is not subject to any merger control or other regulatory approval. In contrast the Severn Trent proposal is subject to Severn Trent being satisfied that it is not the intention of the CMA to make a Phase 2 CMA referral.”

In its latest offer announcement Severn Trent has reiterated its belief that a deal would provide a “very successful outcome” for the customers of Dee Valley, saying that it plans to build on the company’s great customer service by applying an improved proposition for Dee Valley’s customers.

The utility intends to enhance the current customer service offering including by extending support for vulnerable customers where we provide discounts and support for local people who most need it – potentially up to 90% off water bills in some cases.

Severn Trent said it also intends to launch 24/7 customer support – extending customer service hours to be available for customers whenever they need it at any time of the night or day, through a range of channels including web chat, social media, calls and email;

Dee Valley’s customers will have their local tariffs protected in line with the price control set by Ofwat and would also share in half of any wholesale cost efficiencies achieved, which will be reflected in future bills, Severn Trent said.