Thames Water selects KKR as preferred bidder

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Thames Water has selected the US private equity group KKR as the preferred bidder for the UK’s largest water utility, which is fighting to avoid renationalisation.

KKR, which is already a shareholder in Northumbrian Water, had submitted a preliminary £4bn bid for Thames Water earlier this year.

The decision means that interest from rival suitors including Covalis, Castle Water and CK Infrastructure would not be taken forward at this stage, said a person close to the company.

Thames Water said on Monday that after assessing proposals received, it had chosen KKR “to enter the phase 2 diligence stage” of its equity-raising process as preferred partner.

There was no certainty that a binding proposal would be made by KKR, Thames Water added.

This is a developing story.