Flurry of M&A Puts Spotlight on Large Water IOUs
California Water Service Group (CWSG) has made three attempts to acquire San Jose Water (SJW), but SJW’s Board of Directors has rejected all three offers. Most recently, on 26 April 2018, CWSG made its proposals public, forcing shareholder review. The strategic rationale behind SJW’s acquisition of Connecticut Water will now face scrutiny in the public sphere.
This deal, pending regulatory review, reinforces the trend we are seeing of privately-owned IOUs as acquisition targets. In this Research Note, Bluefield water experts analyze the transaction landscape and competitive positioning of these two San Jose-based companies and their peers.