Thames Water agreed to a creditor‑led takeover that will cost the utility £749 million. The deal caps a months‑long scramble to restructure the UK’s largest water provider after cash‑flow strains and looming regulatory penalties. By handing control to a consortium of lenders, the company hopes to avoid a forced nationalisation that regulators warned could materialise if it failed to secure fresh funding and protect ratepayers from service cuts.

The creditor consortium, led by Barclays and NatWest, will inject capital and assume senior debt, giving it voting rights that supersede existing shareholders. Management expects the restructuring to restore a viable dividend policy and meet Ofwat’s performance targets, but the plan still leaves the firm with a debt load exceeding £10 billion, tightening balance‑sheet flexibility and improve liquidity ratios in the near term.

Investors greeted the agreement as a necessary step to preserve Thames Water’s credit rating, though rating agencies note the heightened leverage could pressure future borrowing costs. The £749 million payout settles outstanding claims and paves the way for a longer‑term financing programme, but regulators will monitor cash‑flow discipline closely as the company works to rebuild public trust and ensure compliance with standards.