Lamport Bassitt Solicitors - Legal News - Calls made for mergers in water industry


	LATEST LATEST LEGAL NEWS ARCHIVE		LATEST NEWS & EVENTS Calls made for mergers in water industry There are too many companies operating in the private water industry in the UK, it has been claimed. According to Tony Wray, chief executive of Severn Trent, overcrowding in the sector means the situation is no longer sustainable, the Financial Times reports. He remarked: "We're very clear that 22 companies means that we're getting sub-optimal solutions." The expert added: "If you look around at other sectors, there are far fewer [operators]." While diversity and competition are important, so too are economies of scale, Mr Wray went on to suggest. Mr Wray claimed that Severn Trent - which serves more than eight million people from the Bristol Channel to the Humber and from mid-Wales to the East Midlands - is not alone in its calls for change. Currently, the regulator Ofwat is conducting a review into the issue and the Conservative party has pledged that it would implement reforms if it comes to power next month. Related Articles: 22/9/2011 - Manufacturers targeting strategic acquisitions to drive growth 21/9/2011 - Mergers and acquisitions rule changes take effect 14/9/2011 - Govt wants to make London a 'legal hub' for the world 12/9/2011 - ICB banking reforms: banks set to be given until 2019 to prepare 8/9/2011 - Banking reforms in danger of being 'watered down' More Corporate Law News