Courts back Severn Trent takeover bid
Severn Trent's attempt to take over a Welsh water supplier is set to press ahead after the High Court gave the deal the go-ahead.
Shropshire water supplier Severn Trent had its £84m offer for Dee Valley Water accepted after winning a bidding war against Ancala last year.
But the case found its way to the high courts after one shareholder, in an effort to scupper the deal, allocated small amounts of shares to 450 individuals to give them a vote when the deal was ratified.
The court has now ruled the takeover can go ahead, although that decision will not take effect until tomorrow to allow for an application to appeal.
Dee Valley Water employs about 180 people and has 230,000 customers across the Wrexham and Chester areas, including close to the Shropshire border around Chirk. In a statement on its website, Severn Trent said: "At the Scheme Court Hearing, following representations from interested parties, the court sanctioned the scheme to effect the revised Severn Trent acquisition.
"The court has however adjourned to February 10 pending any application to appeal.
"Accordingly, the scheme will not become effective prior to this date. Dee Valley will make a further announcement in due course.
"The Dee Valley Board continues to recommend the Severn Trent Scheme to the shareholders."
The companies say the deal could lead to cheaper water prices for Dee Valley customers, including people living around Chirk, Penley and Bronington on the Shropshire border near Ellesmere and Whitchurch.
