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UK watchdog may accept Pennon's remedies to allay Bristol Water deal woes

(Reuters) - Britain's competition regulator said on Tuesday it might accept the remedies offered by Pennon Group Plc to address its concerns over the water company's 425 million pound ($577.49 million) acquisition of smaller rival Bristol Water.

Last month, the Competition and Markets Authority (CMA) said the deal was likely to affect the UK water regulator Ofwat's ability to make comparisons between water companies.

Pennon, which offered its remedies at the end of last year, had said proposed undertakings would seek to maintain separate price controls for the Bristol Water region within a merged water business.

The company in a separate statement said it will continue to work transparently and collaboratively with the CMA during the consultation process.

The CMA has until March 7 to decide on whether to accept the undertakings and clear the deal without an in-depth phase 2 merger probe.

($1 = 0.7359 pounds)

(Reporting by Shanima A in Bengaluru; Editing by Rashmi Aich)