Sumitomo acquires U.K. water utility

Kyodo

Sumitomo Corp. said Tuesday it has bought all the shares in British water utility Sutton & East Surrey Water PLC as part of its global drive to boost its water business.

The trading house aims to build upon its experience in the water business by operating in Britain, where water utilities have been privatized, before expanding into emerging markets.

The utility, which serves an area encompassing south London, was purchased for roughly ¥40 billion from East Surrey Holdings Ltd.

Through its network of facilities, including 3,445 km of mains and eight treatment plants, SESW supplies drinking water to around 655,000 people.

Its turnover in the year that ended last March was £68 million, or some ¥9.8 billion.