Hong Kong-based CK Infrastructure Holdings (CKI) has surfaced as a leading contender to acquire Thames Water should Britain’s largest water utility be placed into a Special Administration Regime (SAR), according to The Times. CKI has reportedly signaled readiness to accept tougher environmental penalties—a stance that contrasts with Thames Water’s class A creditors, who deem such a fines regime financially untenable.
The UK government has appointed FTI Consulting to formulate contingency plans should Thames Water collapse under mounting losses and debt, potentially triggering SAR. Meanwhile, the utility is pursuing approximately £5 billion in financing from senior bondholders to avoid nationalisation. In July, Thames Water stated it had sufficient funds to remain operational for a year, although regulatory modifications would be essential to seal any deal.
Campaigners, including environmental groups, have urged against an immediate sale post-SAR, advocating instead for public ownership. River Action warned of a “profound betrayal” if debts are forgiven only to transfer the company to private foreign ownership—calling for a reset that prioritises public benefit over private profit.
Thames Water serves around 16 million customers in London and Southeast England and carries approximately £17.7 billion in net debts. The firm has faced significant backlash, including a record fine of £104 million in May for sewage-related environmental breaches.
CKI, which already owns major UK infrastructure assets such as UK Power Networks, previously bid for Thames Water earlier this year but was sidelined when US investment firm KKR was selected as the preferred bidder—a deal that later collapsed. While some MPs have raised concerns over CKI’s partial links to Chinese state investment, ministers reportedly take comfort in the company’s operational track record.
Sources within government reportedly view the SAR option as politically viable amid the absence of a credible rescue plan from creditors.
