Swedish private equity firm EQT has completed its acquisition of a 42% stake in Kelda Holdings, the parent company of Yorkshire Water. The deal, first announced in March, has now been finalised, making EQT the latest overseas investor in the water company.
New Ownership Structure
EQT joins two other foreign firms—GIC and TCorp—in owning a significant share of Yorkshire Water. A new chairperson is expected to be appointed, though no name has been announced yet. EQT, ranked as the second-largest private equity firm globally based on funds raised last year, holds a diverse portfolio of assets across multiple sectors.
Company Reactions
Nicola Shaw, chief executive of Yorkshire Water, welcomed the investment: “We are pleased to have EQT on board as we deliver our largest environmental investment programme. They are committed to our turnaround plans and our ambition to deliver improved performance for customers and the environment.” She added that the company is working with all shareholders to strengthen the business and invest for the future.
Kunal Koya, a partner at EQT, will join the Yorkshire Water board. He stated: “EQT is delighted to invest at a pivotal moment for Yorkshire Water and the wider sector. We bring long-term capital and deep infrastructure experience, and together with GIC and TCorp are committed to strengthening the company's financial resilience and supporting the delivery of its investment program which will enable better service for customers and improved environmental performance.”
Industry Context
The deal occurs amid intense scrutiny of UK water companies over environmental performance and foreign ownership. Earlier this week, the government objected to a rescue plan for Thames Water, raising the possibility of public ownership for that company.
