Thames Water hopes to agree takeover by end of June as it mulls six approaches

Thames Water said it has received six takeover approaches from potential suitors to buy the company, and that it hopes to agree a deal by the end of June.

The company said talks are ongoing and that it wants to complete the transaction by the end of September.

It said the proposals were in response to a fundraising process launched in 2024, and that it “has since been conducting a detailed assessment of each proposal”.

Heavily indebted Thames Water is England’s biggest water company, with about 16 million customers.

The company is in at least £16 billion of debt, and recently won court approval for a £3 billion loan deal designed to keep it running into 2026.

Thames Water said five of the bids “provided financial metrics”, while one of them is for “minority equity, intended to partner with investors, and did not set out financial metrics”.

The PA news agency understands that Castle Water, a firm co-owned by Conservative Party treasurer Graham Edwards, is one of the parties that has approached Thames in recent months.

Castle Water is understood to be proposing to pump around £4 billion in to Thames in return for a majority stake.

Another bid came from investment group Covalis, which could see the company broken up then re-listed on the stock market.

Infrastructure investor KKR, which is a minority shareholder in Northumbrian Water, is also understood to be vying to take over the utility.

Most of the offers hinge on “further … regulatory support and accommodations being achieved”, it said.

“Discussions with relevant parties are ongoing, although there is no certainty that a binding equity proposal will be forthcoming or that any such proposals will be capable of being implemented.”

The investment bank Rothschild & Co is running the process for Thames.

The water giant also said its appeal to the UK’s competition watchdog to allow it to raise consumer bills by more than previously agreed had been put on hold for about four months.

In December, water regulator Ofwat said Thames could raise bills by 35% by 2030, an average of £152 more than current levels.

Thames later said it was appealing to the Competition and Markets Authority to raise that figure further, in a move criticised by consumer groups.

Now it is deferring that appeal for 18 weeks while it focuses on the takeover process.

Thames Water chairman Sir Adrian Montague said bosses appreciated Ofwat’s “time and constructive approach” by letting it put the appeal on hold.