HBJ Gateley advises Castle Water on acquisition

HBJ Gateley has successfully provided legal advice to Castle Water – a provider of water and waste services in Scotland - through the process of acquiring all retail activities for business customers from Thames Water.

This significant development coincides with profound legislative change in competition rules which, from April 2017, will allow all non-household customers in England to switch water supplier for the first time. The change presents Castle Water with a huge opportunity to become one of the major providers of water and sewerage in England – a market estimated to be worth £2 billion.

In 2008, Scotland became the first country in the world to introduce customer choice to the non-domestic retail market, and now 24 licensed retailers compete for Scottish customers.

Castle Water has already acquired the business customers of Portsmouth Water, and this further expansion to its operations will see it acquiring Thames Water’s entire non-household retail undertaking in England. Further to this, the deal will cement its customer base on home turf by acquiring Thames Water’s business customers in Scotland.

Andrew Walker, partner at HBJ Gateley (pictured), said: “We expect to see further consolidation and forays into the English market. Castle Water has made its intention clear with two strategic acquisitions to provide immediate scale ahead of market opening.

“Having advised on both of these deals, two of the first of this type following the government’s decision to open the market in England to competition, HBJ Gateley’s specialist team is well placed to help other operators, investors and entrepreneurs who see opportunities in what will be a hotly-contested market.

“We wish Castle Water continued success in the expansion of its operations south of the border.”