Thames Water Preferred Bidder KKR Withdraws from Rescue Deal

KKR, a major US private equity group, has withdrawn from negotiations to provide additional equity funding to Thames Water, the largest water supplier in the United Kingdom. Thames Water had previously selected KKR and another investor as preferred bidders in a deal valued at approximately £4 billion. The withdrawal of KKR has cast uncertainty over the future of Thames Water, which has been facing financial difficulties. The company supplies water to millions of customers and has been under scrutiny due to its debt levels and operational challenges. With the collapse of this rescue deal, there is increased speculation about the potential for temporary nationalisation or other forms of government intervention to ensure continued water supply and infrastructure maintenance. Thames Water's financial situation and the failure to secure new investment highlight broader concerns about the stability and regulation of the UK's water sector.