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Ofwat has approved the change of ownership of Northumbrian Water after owners sold a quarter of their stake to American investment firm.
The regulator said it has not identified any issues with the change of ownership, operational activities or finances of new investors KKR & Co.
KKR acquired a 25% stake in the company via a diversified infrastructure fund that trades in the UK as Nimbus UK Bidco. The deal, worth £867 million, was struck in July 2022 and completed shortly before the turn of the year.
KKR formed Nimbus in March last year to make the Northumbrian acquisition.
The global investment parent company KKR is based in the US and listed on the New York Stock Exchange. In 2022 the company reported having $496 billion of assets under management. Its investments previously included a 75% share in South Staffs Water from 2013 to 2018.
Ofwat decreed no licence condition modifications are necessary at present.
The majority stake, 75%, remains in the control of the previous Hong Kong-based owners. CK Hutchinson Holdings formerly had an 80% stake and now holds 60%, while its subsidiary CK Asset Holdings holds 15% when it previously had a 20% share.
As well as Northumbrian, CK Hutchinson Holdings controls a number of infrastructure companies around the world, including UK Power Networks, Northern Gas Networks, and Wales & West Utilities in the UK.
Having approved the change in ownership structure, Ofwat opened a consultation inviting views on the incoming owners and whether licence condition changes are necessary.
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