The Competition and Markets Authority has given its unconditional formal approval for Severn Trent's proposed acquisition of Dee Valley Water.

Severn Trent  has welcomed the CMA announcement giving the deal the go-ahead - the first merger of water companies to achieve clearance under the new special water merger regime. Liv Garfield, CEO of Severn Trent Plc commented:

"I am obviously delighted that today's unequivocal announcement by the CMA confirms that the Severn Trent offer for Dee Valley can proceed without further regulatory investigation or approval. For all the reasons we have previously set out we absolutely believe Severn Trent will be the best supportive owner of Dee Valley."

Rival bidder Ancala has announced that it has extended the closing date of its offer of 1,706 pence, which is final and will not be increased, for a further 14 days as it has failed to achieve the requisite level of acceptances as at 3 pm on 15 December 2016.

Ancala received acceptances or owns shares representing 41.13 per cent. of the issued Dee Valley Voting Ordinary share capital. However, the vast majority of the acceptances were obtained from shareholders who had already signed irrevocable undertakings to accept Ancala's offer on 20 October 2016, prior to the announcement of Severn Trent's offer which is 119 pence higher.

Severn Trent's offer has the unanimous support of the Dee Valley Board which is recommending that 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.

In order to benefit from Severn Trent's significantly higher offer of 1,825 pence, Dee Valley Voting Ordinary Shareholders are being advised that they should continue to take no action in respect of the Ancala Revised Proposal and should not sell their shares to Ancala.