Private equity giant KKR submitted a £4bn bid to acquire a majority stake in Thames Water, the UK’s largest water utility.

The firm faces competition from other potential buyers, including independent supplier Castle Water and Hong Kong-based CK Infrastructure, part of CK Hutchison Holdings.

The bid comes as Thames Water navigates a precarious financial situation. Earlier this week, London’s High Court approved a controversial rescue plan allowing the company to raise up to £3bn in high-cost debt. Justice Leech, who presided over the ruling, expressed reservations about the deal, citing the “eye-watering” £800m in legal, financing, and advisory costs. He noted that while customers may be alarmed by the costs, creditors are expected to bear the financial burden.

According to reports, KKR has no plans to break up Thames Water or sell off assets to finance its acquisition. The bid underscores the heightened interest from private equity in UK infrastructure assets, particularly as Thames Water seeks stability amid mounting financial strain.

Thames Water’s precarious position has sparked debate over its future, with concerns about whether further private investment or potential state intervention will provide the long-term solution it needs.