Private equity firm KKR in talks for potential takeover of debt-ridden Thames Water
From Yahoo Finance: 2025-03-31 04:45:00
Thames Water is seeking a cash injection to avoid collapse. US private equity firm KKR is in talks for a potential takeover. A deal is uncertain pending due diligence and regulatory approvals. With £20bn in debt, the utility faces a financial crisis despite a recent £3bn emergency loan.
The proposed takeover by KKR could prevent the need for a government-backed bailout. Hedge funds Elliott and Apollo are in separate talks for an equity raise in case the deal falls through. Thames serves 16m customers in London and the South East and seeks billions in fresh equity to stabilize finances.
Thames Water plans to raise average water bills by £31 annually, sparking public anger. The increase aims to fund a £21bn investment in the company’s aging infrastructure. Rival creditors and campaigners, including MP Charlie Maynard, oppose the restructuring and advocate for nationalization over loans.
KKR emerges as the preferred bidder for Thames Water, beating out rivals like CKI Infrastructure and Castle Water. The proposed deal includes potential financial impairment for the utility’s debt. Discussions are ongoing on various aspects of the agreement to secure the company’s future.