The Competition and Markets Authority has launched an investigation into the anticipated acquisition by Macquarie Asset Management of a jointly controlling interest in Last Mile Infrastructure (Holdings) Ltd.
The Competition and Markets Authority has launched an investigation into the anticipated acquisition by Macquarie Asset Management of a jointly controlling interest in Last Mile Infrastructure (Holdings) Ltd.
Last Mile Infrastructure Holdings Ltd. Is an investment holding company. Together with its subsidiaries, the principal activities of the Last Mile group of companies are the design, build, ownership and operation of utility infrastructures across the UK.
In addition to the connections secured through the group’s asset origination channel - Energetics Design and Build Ltd, UK Power Solutions Ltd and Icosa Water Ltd - the number of connections adopted from other independent connections providers increased significantly during the year, according to its annual report for the year ended 31 March 2023. The group now owns and operates more than 590,000 utility connections across the UK, servicing both residential and commercial customers, an increase of 23% compared to the prior year.
The group’s acquisition of Icosa Water Ltd. and Icosa Water Services Ltd. In May 2020 has contributed to the “significant increase in connections energised during the financial year”, the report says. The regulated “last mile” water and wastewater connections provider provides homes and commercial premises with last mile connections design, build and ownership services across England and Wales. According to the report, Icosa operates independently alongside the group’s electricity and gas connections and adoption businesses and continues to build a strong order book for the group.
Total value of group network assets as at 31 March 2023 of £931,379,000 (2022: £725,577,000) includes a revalution uplift of £75,793,000 which reflects “the strong, stable and predictable future revenues anticipated to be generated by the connected networks”, the 2023 report says.
The CMA is considering whether the transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of a merger situation could be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
In August 2021 Macquarie Asset Management, on behalf of its long-term investors including pension funds and insurance companies, acquired a majority stake in Southern Water.
In addition, the CMA is also considering whether the transaction, if carried into effect, will result in the creation of a relevant merger situation involving an energy network merger under the merger provisions of the Enterprise Act 2002. If so, the CMA will also consider whether that situation could be expected to cause substantial prejudice to the ability of Ofgem to make comparisons between energy network enterprises of the type involved in the energy network merger.
The CMA is now inviting any interested party to submit written representations about any competition issues or Ofgem’s ability to make comparisons between energy operators to:
Principal Case Officer, Gulalay Hammad:
Case Officer, George Ankers:
The CMA published its announcement of the merger inquiry on 19 July 2024 – the invitation to comment closes 2 August 2024.
The deadline for the CMA to announce its decisions whether to refer the merger for a phase 2 investigation is 16 September 2024 - the current statutory deadline by when the decisions will be announced.
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