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Even the vultures are giving up on hopeless Thames Water

The Times reports this morning that KKR have given up on Thames Water, having discovered after "due diligence" somewhat late in the day what everyone else could see that they company is a total disaster. It's behind their paywall but this is what it says:"The private equity group KKR has pulled out of talks to rescue troubled Thames Water.In a brief statement ,Thames Water said that KKR 'would not proceed with its equity injection plans, and that the US private equity firm’s preferred partner status has now lapsed.'Sir Adrian Montague, chairman of Thames Water, said: 'Whilst today’s news is disappointing, we continue to believe that a sustainable recapitalisation of the company is in the best interests of all stakeholders and continue to work with our creditors and stakeholders to achieve that goal.' "So what will happen now? Will the government be saddled with their debt? The whole thing is a monumental disaster.PS: It’s also in the Guardian now:https://www.theguardian.com/business/2025/jun/03/thames-water-kkr-pulls-out-rescue-deal

Richard Carter ● 28d3 Comments

It is easy to say that about bonuses when you are sitting comfortably elsewhere and are only looking at a part of the situation but I can't imagine it is that easy to be trying to manage the personnel in a company which is the subject of such heavy politics.It was the second company that bought it that piled the debt on.  Regulation of a monopoly like water with a guaranteed increasing customer base was always going to be very attractive on the open global market and the regulation of it has been a failure.Pipe blockages and breakages cost the water companies millions and yet heavy marketing still puts products on the market which cause big problems when flushed or put down the drain.  It would be really good for us all if this problem was reduced.Local MP Fleur Anderson had a Bill going through Parliament to ban plastic in wet wipes.  I'm not sure what is happening with that now that the Govt has changed.  Many companies have already stopped putting plastic in wet wipes.  But it seems that Water UK (the governing body for Water in the UK) have now decided that wet wipes should not be flushed whether or not they have plastic in them as it is wet wipes themselves which cause the majority of blockages.  They can stay just out of sight after having been flushed instead of falling apart and then suddenly make their existence known.  When they get mixed with fats and oils which solidify they stick together in lumps.  Thames 21 did another Wet Wipe Count this year at Hammersmith.  I haven't seen the results.The plastics in wet wipes have been getting into our food chain hence the urgency to get that problem sorted out.https://bills.parliament.uk/bills/3062https://www.bbc.co.uk/newsround/68873728https://www.thetimes.com/uk/article/clean-it-up-flushable-wipe-certifications-industry-s760gnnj0?utm_source=google&utm_campaign=17515457033&adgroupid=&utm_medium=cpc&utm_content=&utm_term=&gad_source=5&gad_campaignid=21344063938&gclid=EAIaIQobChMI1dCfvJjVjQMVa6NQBh33yRwbEAAYASAAEgKhC_D_BwEhttps://deframedia.blog.gov.uk/2024/04/22/coverage-of-the-uk-wide-ban-on-wet-wipes-containing-plastic/Sadly many people seem to be more interested in their water bills and their convenience than the state of our rivers and oceans - and our food chain!  It ALL matters.

Philippa Bond ● 28d

And in the BBC website:https://www.bbc.co.uk/news/articles/c93leknykvyoYes, it is a monumental disaster.  I could not believe that Thames Water had the audacity to use the bail out funds from the government to pay bonuses for their execs....  What a horrible company it is!

Ivonne Holliday ● 28d

Thames Water has of course just been fined yet again so their debs would have course have increased. "KKR is a leading global investment firm. We aim to deliver strong returns and shared success to those we serve and the world at large."Ofwat certainly used to say something on their website to the effect that  investors in privatised companies expected to get a return on their investment.

Philippa Bond ● 28d