Consolidation in the UK water industry is gathering apace. As reported by WWTonline last month, engineering consultancy Mott Mac-Donald has snapped up its de-sign-and-build joint venture partner, Bentley Holdings, while Dutch consultant Ar-cadis is still pursuing a merger with London-based Hyder. This comes in a year where global giant GE has bought out privately-owned UK anaerobic digestion specialist Monsal in March, and a near miss saw the anticipated merger of contractors Balfour Beatty and Caril-lion fall through, at least for now. But these examples are just the first whisperings of what analysts expect to become a boom in acquisitive activity. The utilities themselves are not immune, with Ofwat indicating that it is softening its stance on takeovers. There is currently a downward acquisitive pressure on the UK water sector from both national and international forces. Without exception, every water-related company we have spoken to in the past 12 months, with a turnover greater than £3M, has been approached to sell the business. Such offers are often being made on a monthly basis.
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