Watchdog to investigate Severn Trent acquisition
The Competition and Market Authority (CMA) has revealed it’s investigating Severn Trent Green Power’s acquisition of Andigestion.
The subsidiary of parent firm Severn Trent announced plans to purchase Andigestion in February, enabling the company to cover cities such as Bristol, Gloucester and Exeter thanks to Andigestion’s two food waste anaerobic digestion plants.
At the time, Severn Trent said the acquisition will bring an additional 45 GWh of energy generation output every year will help bolster the energy resilience of the group.
The CMA is delving into whether the merger may result in a lessening of competition within any market in the UK for goods or services.
ST Green Power says it is one of the largest producers of renewable energy from food waste in the country, with a quarter of all UK households’ collected food waste sent to its facilities for processing and recycling into clean energy that can power 60,000 homes.
Christer Stoyell, managing director of Green Power, said in February: “Having delivered double-digit growth in renewable energy generation since 2020, today’s announcement marks the start of a very exciting next chapter for all of us at Green Power.
“Following CMA clearance, we look forward to welcoming our new Andigestion colleagues and working with them to develop new growth opportunities and provide our award-winning services to even more households and businesses – powering the UK towards a cleaner and more sustainable future.”
And Peter Prior, Summerleaze group executive chairman, said: “The Summerleaze Group has been at the forefront of the development of the UK’s anaerobic digestion industry since 2005.
“Since then, with the help of its dedicated team of employees, Andigestion has grown into a profitable business which the directors now consider would benefit from being incorporated into a wider renewable energy portfolio, of which it will form a valuable part. We believe that Severn Trent Green Power is ideally placed to deliver that.”
