EQT agreed to acquire a 42% stake in Kelda Holdings, the parent of Yorkshire Water, and will inject additional equity to back the company’s multi-year investment programme.

As part of the deal, EQT will help repay a roughly £600 million inter-company loan due before March 2027 and support Yorkshire Water’s planned investments, including environmental and sewage-management improvements.

The transaction comes amid tighter UK regulation and scrutiny of water sector finances and environmental performance.

The investment aims to strengthen Yorkshire Water’s balance sheet and fund its approximately £8.3 billion environmental programme from 2025 to 2030, creating over 1,000 local jobs.

EQT’s investment thesis centers on active ownership, long-term value, resource efficiency, and strong environmental performance, leveraging experience in water and infrastructure.

The transaction is part of a new phase of UK water-sector investment after the latest price review, with emphasis on progress and accountability.

Yorkshire Water serves about 5.5 million customers across roughly 2 million homes and 140,000 businesses, operating nearly 700 treatment works, 120 reservoirs, and over 83,000 km of mains in Yorkshire.

Nicola Shaw described the investment as a positive step, underscoring EQT’s expected governance contributions and delivery of Yorkshire Water’s £8.3 billion investment programme.

Government steps have closed loopholes allowing large bonuses for water bosses, following reports of bonus payments linked to offshore parent companies.

The deal is subject to approvals, including antitrust clearance, and does not constitute an offer or solicitation to sell securities.

The deal follows scrutiny over Yorkshire Water’s environmental impact and executive pay, including a £700,000 fine for sewage releases and revelations of undisclosed pay to the CEO totaling £1.3 million since 2023.

EQT has a track record in the UK, deploying over £10 billion in equity and supporting around 36,000 jobs through its portfolio.