News on 25 August 2000

Anglian Water has acquired Scottish construction company Morrison for £262m. The shares were sold at an 83p premium to the company’s closing price of 302p the day before the offer. The company says it bought Morrison because the construction company has become a provider of a comprehensive range of asset creation and management services, which means it can not merely build an asset but also finance and operate it.

Chris Mellor, Chief Executive Officer, Anglian Water and Sir Fraser Morrison, Chief Executive Officer of Morrison

Anglian says that outsourcing is likely to become increasingly important. It aims to become a leader in the operation of water assets and will transfer its asset management and operations skills to other sectors.

Anglian Chief executive Chris Mellor says that the combination of Anglian’s operating capability and Morrison’s contracts with electricity, gas, transport and telecommunications companies, will enable Anglia to win further high added value operating contracts.

Morrison’s chairman Sir Fraser Morrison states: "I am confident that the combined business will be a market leader in the creation and management of assets in the utilities, transport and property sectors."

Both companies claim the deal will not lead to job losses.

Jessica Jarlvi