Thames Water lenders propose special share to stop government takeover

Lenders to Thames Water have proposed a 'golden share' arrangement to prevent the struggling water company from being nationalised by the UK government. The plan would give creditors special voting rights to block any attempt by the state to take over the firm. Thames Water, which supplies water and sewage services to millions of customers in London and the Thames Valley, has been under financial strain due to high debt levels and rising costs. The possibility of nationalisation has been raised by local politicians, including Labour mayor Sadiq Khan, as a way to secure water services and address concerns over pollution and infrastructure investment. However, the company's lenders argue that a takeover would be costly for taxpayers and would disrupt ongoing restructuring efforts. Under the proposed 'golden share' model, lenders would have veto power over any change of ownership, effectively shielding the company from government control. Talks are ongoing between the company, its creditors, and regulators. Thames Water has not commented on the proposal. The outcome of these discussions could set a precedent for how other privatised utilities in the UK are managed amid growing public calls for renationalisation.