Ofwat has launched a new consultation following notification of a change in ownership that affects two regulated companies - a new Swiss investor has acquired a significant stake in Portsmouth Water and Leep Networks (Water) Ltd.

The regulator has published a consultation document seeking views on whether any issues arise out of the recent change of control and on Ofwat’s own assessment of the incoming owner of Portsmouth Water and Leep Networks.

Ofwat’s assessment has reviewed information provided by the new owner and the regulator has separately carried out its own investigations on the new corporate structure using publicly available information.

Vontobel Holding AG, which is registered in Switzerland, has taken a substantial minority stake in a holding company of both Portsmouth Water and Leep Networks – in Ofwat’s view this meets the licence definition of Ultimate Controller. Ofwat has assessed the capacity of the new investor in both companies to be an indirect investor of a regulated water company.

In July 2024, Vontobel Holding AG acquired a substantial minority stake of the shares in Ancala Partners LLP, the ultimate holding entity of Portsmouth Water and Leep Networks - the transaction completed on 1 July 2024.

When a change of ownership takes place, Ofwat looks at how much relevant experience the new owner has in delivering, managing, or investing in the infrastructure sector to gain insight into the new owner’s knowledge and capabilities in owning a regulated entity.

Ofwat also wants to be satisfied that any change of ownership does not compromise the effective management of the appointed water company.

The assessment includes looking at relevant information including ownership data and other publicly available information about the investor, in each particular case, to help satisfy Ofwat that a new owner has the integrity and the operational and financial capacity to assume the role of owning a water company.

Vontobel AG is the holding company of a banking group, which has established itself as a global investment firm, specialising in wealth and asset management for private and institutional clients, as well as in investment solutions.

The institutional client services include asset management expertise and services to sophisticated investors and intermediaries, such as banks, insurance companies, and asset managers. Private client services include wealth management services for high net-worth and ultra-high net worth individuals, as well as financial intermediaries like family offices and external asset managers.

The Vontobel Group provides services to investors worldwide, with a presence in 28 locations. Vontobel AG has stated that its acquisition of a minority stake in Ancala marks a milestone in delivering on the Vontobel Group's private markets strategy.

In February 2024 Vontobel agreed to acquire a significant minority stake in Ancala Partners LLP, a London-based independent private infrastructure manager. The transaction marks Vontobel’s entry into institutional private markets and is a key milestone in delivering on its strategic priorities.

Commenting on the deal, Christel Rendu de Lint, Co-CEO of Vontobel said:

“This stake in Ancala is an important milestone in the execution of our strategy. Providing access to the highly attractive private infrastructure market means clients can benefit from stable, uncorrelated and inflation-protected cash yields, and long-term value creation through Ancala’s active asset management and proprietary origination capabilities.”

Vontobel Asset Management UK 2 Holding Ltd was incorporated on 5th February 2024 - as of July 2024, Vontobel Holding AG is the sole entity with significant influence or control over Vontobel UK.

As the company was only formed in February 2024, Vontobel UK has no financial history, and its first set of annual accounts are due by 30 September 2025. The entity was incorporated to facilitate Vontobel AG's acquisition of a minor stake in Ancala.

The consultation paper states:

“Following the acquisition, Ancala will continue to manage the funds’ investment in Portsmouth Water and Leep Networks, and management do not anticipate that there will be any changes to either the direct day-to-day management of either Portsmouth Water or Leep Networks, or the identity of Ancala as the party with de facto overall control. There will be no operational changes to either Portsmouth Water or Leep Utilities board or management teams as a result of the change of ownership structure.”

Following Ofwat’s change of control assessment, which included reviewing information received from both the water companies and the new investor itself, the water sector regulator has not identified any issues, based on the information it has received and considered to date. 

“Therefore, we do not see a need to introduce additional protections in the licence directly as a result of the change in ownership,” Ofwat concludes.

Deadline to submit comments to Ofwat’s consultation is 25th September 2024 – comments should be emailed to This e-mail address is being protected from spambots. You need JavaScript enabled to view it or posted to:

Financial Resilience Change of Control Consultation response, Ofwat, Centre City Tower, 7 Hill Street, Birmingham, B5 4UA.

Click here to access the consultation document.