BRITAIN'S Monopolies and Mergers Commission is to investigate rival takeover bids for South West Water.

Severn Trent and Wessex Water announced their offers in March and the MMC is obliged to examine proposed takeovers in the water industry.

The reference to the MMC by Trade and Industry Secretary, Mr Ian Lang, was delayed pending an inquiry by the Office of Fair Trading into the impact of the bids on the companies' waste management ventures.