From Yahoo Finance: 2025-06-03 08:51:00

US private equity group KKR withdraws from injecting fresh equity into Thames Water, leaving its future uncertain. The company serves 16 million customers in London and south-east England, with the largest debt burden of any water company in Britain, sparking calls for temporary nationalisation due to alleged mismanagement.

Environment secretary expects Thames Water to seek a market-led solution for funding after KKR’s exit. An interim review by Sir Jon Cunliffe highlights deep-rooted issues in the water industry in England and Wales, proposing regulatory changes. KKR’s proposal involved slashing £8bn of Thames Water’s debt.

Thames Water’s financial instability worsened by hefty fines, including a record £123m penalty for environmental breaches. KKR’s withdrawal prompts interest from other bidders like Castle Water and CK Infrastructure. MPs express concern over the company’s financial state, advocating for special administration to address debt levels.

Pennon Group, owner of South West Water, reports deepening financial losses but plans to fund £3.2bn investment through rising water bills. Thames Water faces uncertainty as creditors take on the turnaround job, including writing off debt and providing equity investment. The government must ensure any takeover is in the public interest.

Read more: Thames Water preferred bidder KKR pulls out of rescue deal