KKR Pulls Out of Thames Water Rescue Deal

KKR & Co., a major U.S. private equity firm, withdrew its multi-billion-pound investment offer for Thames Water after being chosen as the preferred investor in March, citing limited upside and difficult prospects for a profitable turnaround. Thames Water, serving 16 million customers and burdened with nearly £20 billion in debt, remains in financial crisis as it seeks alternative recapitalization plans. With KKR's exit, the risk of temporary government nationalization has increased if new funding is not secured. Chairman Sir Adrian Montague expressed disappointment but reaffirmed ongoing efforts with senior creditors and regulator Ofwat to stabilize the company. The situation is unfolding amid regulatory scrutiny, pollution concerns, and rising customer bills in the UK water sector. Thames Water's future remains uncertain as it races to find a viable financial solution.