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Severn Trent to sell Analytic Services Business

8th August 2012

The UK’s second largest water company Severn Trent Plc., has announced today that it will sell its Severn Trent Services’ Analytical Services business. Severn Trent Analytical Services, which is the trading name for Severn Trent Laboratories Ltd; provides potable, wastewater and contaminated land testing services to UK commercial and utility customers.

In an official statement released today, Severn Trent said “The business accounts for about 1.5 per cent of Severn Trent Group’s overall revenue. Over recent months, Severn Trent Analytical Services has become a smaller business that is predominantly commercial-customer focused. At the same time, the sale addresses a number of commitments Severn Trent Plc. has made to Ofwat in relation to the pricing of certain contracts at Severn Trent Analytical Services”.

Water industry regulator, Ofwat said in an official statement today that it has “opened a consultation on proposals to accept binding commitments from Severn Trent Plc.”. The consultation will run for 4 weeks and “seeks views from interested parties on the appropriateness of Ofwat accepting the commitments offered by Severn Trent Plc.” Ofwat added. This comes after Ofwat had received a complaint that “Severn Trent Laboratories Limited had engaged in anti-competitive pricing practices” it is alleged that this had been “enabled by the structural links between Severn Trent Water Limited and Severn Trent Laboratories Limited.”