The utility had promised regulator Ofwat it would sell Severn Trent Analytical Services, which accounted for 1.5 per cent of group revenue, in response to an allegation of market abuse.
A competitor, Alcontrol Laboratories, had accused Severn Trent’s laboratory business of taking advantage of structural links with the water company to price services below cost.
Buyer ALS is headquartered in Australia and runs 350 laboratories in 55 countries, employing more than 13,000 people.