Lyonnaise Europe plc

1. Title of report: Lyonnaise des Eaux SA and Northumbrian Water Group plc (MMC - Cm 2936)

2. Date of report: 4 July 1995 Published: 26 July 1995

3. Orders: N/A

4. Date of original undertakings: 23 April 1996

5. Companies giving undertakings: Lyonnaise Europe plc

6. Details of undertakings: Behavioural undertakings

(i) Within four months of the Offer being declared unconditional, the Companies or either of them shall prepare a scheme/s for the transfer of assets to the other or to the Replacement Appointee;

(ii) That a Replacement Appointment is made not later than the submission of the transfer schemes referred to above;

(iii) (a) The water services revenue of the Replacement Appointee will be lower, than the combined water revenues of the Companies would have been if the Adjustment factors determined by the Director on 29 July 1994 had continued to apply:

1996/97 1

1997/98 1

1998/99 2

1999/2000 10

2000/2001 12.5

2001/2002 15

(b) The former water service customers of North East Water plc will not, before 1 April 2000, pay any more for their water services than they would have done if the company had retained its Appointment;

(iv) Lyonnaise shall ensure that the Replacement Appointee shall:

(a) provide the same standard of service to former customers of the Companies; and

(b) apply the provisions of 'Customer Focus' to former customers of Northumbrian Water Ltd;

(c) provide the Director with certain financial information within set months of the Replacement Appointment taking effect.

(v) Lyonnaise shall ensure:

(a) that it provides the Director with all information that he may reasonably require to enable him to monitor these undertakings and in particular about

- quality milestones

- tariff action plan

- table E and

- the public documents

(b) (with limited exception) the shares of a single company which controls all UK water enterprises controlled by Lyonnaise or any Group Company will be listed on the London Stock Exchange not later than 31 December 2005

In these undertakings

'the Director' means the Director General of Water Services

'the Replacement Appointee' means the proposed Appointment referred to in paragraph 2 above.

7. Date of amendments: N/A

8. SIC code: 41.00 (Collection, purification and distribution of water)

Back to: Mergers undertakings