CK Infrastructure stepped forward with a £7bn ($8.86bn) bid for a majority stake in Thames Water, surpassing a rival offer from KKR that exceeded $5bn.

The bid, reported by the Financial Times, comes with a major condition: bondholders must take significant losses.

Thames Water faces severe financial pressure with £18bn in debt. Recently, the utility secured a £3bn emergency financing deal from senior creditors to stave off collapse and prevent a government bailout. This financial distress makes Thames Water a risky yet attractive target for investors ready to restructure its debt.

In parallel, Thames Water is challenging regulators over its pricing strategy. The company is appealing to the Competition and Markets Authority for the right to raise customer bills by 53% over 2025–2030. This proposed increase is considerably higher than the 35% hike approved by Ofwat and could impact the utility’s future valuation.

The final outcome of the bid will depend on successful debt restructuring and regulatory approval. Thames Water has acknowledged receiving multiple bids in its ongoing equity sale process, although no further details have been disclosed.

None of the parties—Thames Water, CK Infrastructure, or KKR—have commented on the latest developments. This bid underscores the growing investor interest in distressed utilities amid a broader market environment of restructuring and regulatory challenges.