EQT has agreed to acquire a 42% stake in Kelda Holdings, the parent company of Yorkshire Water, marking one of the largest recent investments in the UK water sector as the industry faces mounting regulatory and financial scrutiny, according to a report by Reuters.
Singapore’s GIC will increase its stake in Yorkshire Water to 42% as part of the deal, while Australia’s TCorp will increase its stake to 16%.
As part of the agreement, EQT will also contribute to a loan of approximately £600m that Kelda is required to repay before March 2027. EQT Infrastructure partner Kunal Koya said the firm plans to inject fresh equity rather than restructure Yorkshire Water’s debt, with the aim of strengthening the company’s financial position and supporting investment in infrastructure.
The investment comes as the UK’s privatised water sector faces heightened scrutiny over high debt levels, ageing infrastructure, and environmental concerns.
Yorkshire Water provides water and sewerage services to around 5.5 million people and 139,000 businesses across northern England. According to its latest results, the utility reported net debt of £7.4bn at the end of September against a regulatory capital value of around £10bn.
Kelda was taken private in 2007 in a deal valued at about £3bn.
