SJW Group and Connecticut Water Service Inc. have withdrawn their current merger application at the Connecticut Public Utilities Regulatory Authority.
The companies continue to weigh their options, including the possibility of submitting a new application with the authority, or PURA, they said in a Jan. 9 news release. SJW and Connecticut Water affirmed their commitment to their merger agreement, maintaining that their proposed transaction is in the public interest.
On Jan. 4, the PURA rejected the companies' request to extend the time allowed to demonstrate that the acquisition of Connecticut Water by SJW is in the public's interest. SJW, which is headquartered in San Jose, Calif., is proposing to acquire Connecticut Water for $70 per common share.
The PURA on Dec. 3, 2018, filed a proposed decision rejecting the transaction, stating that it "would leave Connecticut Water Service in worse condition both financially and managerially, that it does not offer sufficient meaningful, specific, or measurable public benefit, and that it undermines local control of Connecticut utilities."