Yorkshire Water has announced that Swedish private equity group, EQT, has agreed to acquire a 42% stake in Kelda Holdings, the water firm’s parent company.

The move will see EQT commit a £600m intercompany loan repayment, that is due before March 2027.

Yorkshire Water, which serves over five million customers daily, said the investment from the group “signals confidence” in the water company’s future plans.

EQT stated that it would support Yorkshire Water’s plan to deliver its largest ever environmental investment programme, with a total of £8.3bn dedicated to improving services and upgrading infrastructure throughout the region between 2025 and 2030.

Following completion of the transaction, Yorkshire Water’s existing shareholders – GIC, a global investor, and TCorp, the investment and financial management partner of the New South Wales (NSW) public sector in Australia – will hold 42% and 16% of the water company, respectively. The change of ownership is expected to be completed by the end of June 2026.

“This is a great step forward for Yorkshire Water,” said chief Executive of Yorkshire Water and Kelda Holdings, Nicola Shaw.

“The EQT team will bring additional expertise to our board, and their backing is a strong vote of confidence in our plan to improve performance and the progress we have made so far. EQT has a long-term perspective and their team is committed to supporting the delivery of our £8.3bn investment programme.

“Their support, together with GIC and TCorp, will enable us to continue to execute our strategy, maintain focus on operational performance, and deliver the investment needed to improve outcomes for customers and the environment across Yorkshire.”

Partner at EQT Infrastructure, Kunal Koya, added: “Our strong track record as a long-term active owner of large infrastructure assets makes EQT a natural partner for Yorkshire Water.

“We believe that as a responsible private capital manager, EQT can play an important role in modernising the UK’s water infrastructure, and the company’s multi-year investment plan reflects that objective.”

---