Thames Water Lenders Offer Golden Share to UK Government in Revised Rescue Proposal

A consortium of lenders bidding for Thames Water is considering offering the UK government a golden share as part of a revised rescue deal. The Independent reported that the lenders are also weighing material improvements to their previous £10 billion proposal while remaining in talks with regulators. Thames Water serves around 16 million customers across London and the South East.

The lenders, operating as London & Valley Water, said the new supervisory structure would give enhanced local representation for local authorities and regional leaders. They stated that the plan would deliver greater public control without any government funding or cost to taxpayers. A previous rescue deal with KKR collapsed in May 2025.

Former environment secretary Emma Reynolds last month said the £10 billion plan did not go far enough to protect customers or the environment. Dame Angela Eagle was appointed Environment Secretary by Prime Minister Andy Burnham. The UK government already holds golden shares in privatised companies of national and strategic importance, including Royal Mail after its takeover by EP Group last year.

These shares allow the Secretary of State to veto major asset sales, foreign takeovers or changes to a company’s constitution. A spokesman for London & Valley Water said Thames Water is a company of national importance and that the lenders look forward to working with the new government.

The spokesman added that the creditors continue to view their plan as the fastest and most reliable route to solving the company’s problems.