Pennon Group Plc (LSE:PNN) agreed to acquire Sumisho Osaka Gas Water UK Limited from Osaka Gas UK, Ltd. and Summit Water Limited for £89 million on January 10, 2024. The transaction was also to include the acquisition of Sumisho Osaka's subsidiary company Sutton and East Surrey Water plc and certain other ancillary businesses. As part of the agreement, Pennon is issuing new Ordinary Shares to raise up to £180 million in connection with the Acquisition.

The Acquisition is being financed from existing cash and financial resources. As of March 31, 2023, Sumisho Osaka reported gross assets of approximately £610 million and Loss before tax of 31 million. The Acquisition is now subject to review by the Competition and Markets Authority.

Barclays Bank PLC acted as Lead Financial Adviser and Joint Corporate Broker to Pennon Group. Morgan Stanley & Co. International plc acted as Joint Financial Adviser and Joint Corporate Broker to Pennon Group.