Severn Trent's takeover of Dee Valley Water to proceed

Last week a court in London ruled against a group of shareholders opposing the £84 million takeover.

One shareholder, in an attempt to sink the deal, has allocated small quantities of shares to 450 individuals to give them the right to vote on the takeover.

The High Court ruled that the takeover could proceed, however, and the shareholders group has now decided against any further action, meaning the takeover could happen this week.

"The opposing shareholders have confirmed to the Company that no appeal will be made," Dee Valley said in a statement.

"Accordingly, Dee Valley now intends to implement the scheme as soon as possible and will make a further announcement as to the anticipated timetable in due course.

"It is expected that the scheme will become effective this week."

Shropshire water supplier Severn Trent had its £84m offer for the Mid and North Wales water supplier accepted after a bidding war against Ancala last year.

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.

The companies said 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.

Opponents of the deal had called the court case a "David vs Goliath" battle, and campaigners said after the case that they were "bitterly disappointed", but have now abandoned their legal action.

Severn Trent Water has said it plans to build on Dee Valley's customer service record and make a major investment in its newly-acquired operations in the region, but some staff and customers opposed the move amid fears for jobs and an increase in bills.