KKR drops bid for troubled Thames Water amid mounting financial pressures
KKR has withdrawn its bid to acquire Thames Water, the debt-laden UK utility, casting fresh uncertainty over the company’s future as it seeks a financial rescue plan.
The withdrawal of KKR’s offer, confirmed by Thames Water, leaves the company in talks with senior creditors to explore alternative financing options.
The UK’s largest water and sewage utility, serving 16 million people in and around London, has been under financial strain, burdened by approximately £19bn ($26bn) in debt. In March, it secured court approval for a £3bn emergency funding package to avoid collapse into government administration.
KKR’s withdrawal increases the likelihood that the UK government may need to temporarily nationalise Thames Water, at least as an interim measure. Environment Secretary Steve Reed said the government is closely monitoring the situation, but emphasised that “Thames itself remains stable.”
Thames Water has faced mounting criticism over sewage spills, fines, and the broader state of the UK’s water infrastructure. Last week, the company was fined nearly £123m ($166m) for illegal sewage discharges, sparking widespread public backlash over high dividends and executive pay amid underinvestment in critical infrastructure. Executives have pushed back, blaming regulators for keeping consumer bills too low, limiting funds for upgrades.
Thames Water’s future now depends on finding a recapitalisation solution that satisfies creditors, stakeholders, and the public – an outcome made more challenging in the absence of a rescue bid from KKR.