Tuesday, October 1, 2013
Osaka Gas To Enter U.K. Water Business
The natural gas utility will acquire 50% of the stock in the holding company of midsize water company Sutton & East Surrey Water Plc, which supplies drinking water to some 670,000 people in southeast London. The water company earned 1 billion yen in operating profit on 8.8 billion yen in sales in the year ended in March. Including various expenses, the acquisition will cost 14 billion yen.
Osaka Gas plans to use know-how in customer service and facility maintenance garnered in its city gas segment to develop the U.K. water business. It is positioning water as a new growth field and aims to accelerate development overseas. With the population growing in the region covered by the acquisition, stable earnings are anticipated.
This is the first time a Japanese city gas company has entered the waterworks business overseas.
(The Nikkei, Oct. 1 morning edition)