Thames Water has chosen US investment firm KKR to take a stake in the company as it aims to prevent nationalization. The UK’s largest water supplier, burdened by a debt of nearly £20 billion, has selected KKR as its preferred partner in a bid to secure fresh equity funding for its operations by the end of June. This deal is anticipated to be worth £4 billion. Other bidders, including Castle, a UK-based business water retailer, CK Infrastructure Holdings, a Hong Kong-based company, and Covalis Capital, a London-based investment firm, also expressed interest.

Thames Water’s chief financial officer recently resigned amid the debt crisis, following a court ruling earlier this month that allowed the company to take on additional debt. The company remains focused on stabilizing its financial foundation, implementing its turnaround plan, and finding a market-led solution beneficial to customers, taxpayers, and the wider economy. Thames Water aims to agree on a deal with KKR by the end of June, which would involve senior bondholders taking a significant loss on their loans.

Bidders sought reassurance that they could avoid future fines and punishments for poor performance. Recently, Thames Water won approval for a £3 billion emergency debt bailout from its existing creditors to avoid an immediate collapse into a special administration regime, a form of temporary nationalization. The company’s aging assets have been under intense scrutiny, having been featured in a recent BBC documentary.

Source: https://www.theguardian.com/business/2025/mar/31/thames-water-names-us-private-equity-group-kkr-as-preferred-partner