Some workers at the JNWW Company could lose their jobs if JEC does take control of the water suppliers.

JEC's Managing Director, Mike Liston, says it was likely that people would be laid off if operations carried out by both companies are brought together.

JEC said if it was successful it would enable JEC to provide Jersey's water industry with greater financial strength and ensure its ownership stays in local hands.

The acquisition would allow the States to retain control of water service through its 62% shareholding in the JEC.

Mr Liston said he could not confirm how many jobs would be lost until a deal was negotiated.

Negotiations are at an early stage and it will be a number of months before any proposed takeover goes ahead.