Pennon has revealed a £425m deal to buy fellow utility Bristol Water, with the company recycling some of the cash it raised through last year’s sale of its Viridor waste management business for £4.2bn. Buying privately owned Bristol Water adds to the group a “high-quality business with approximately 1.2m customers”, Pennon said. The company also set out plans to return £1.5bn to shareholders via a special dividend and spend £400m on share buybacks.