Who owns your water supplier?
As Severn Trent looks set to fall into foreign ownership, we look at just how many water suppliers are no longer in British hands.
Sections
Severn Trent
The group involved with the bid include the Canadian investment group Borealis, which already owns assets in the UK, the Kuwait Investment Office and the Universities Superannuation Scheme.
A statement was issued confirming the proposed takeover, although acceptance of the £5 billion bid has not been confirmed.
It said: “This approach is at a very early stage, no proposal has been made and there can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming."
After this announcement shares in the company jumped more than 18% to a record high before falling back again.
More details will be announced on the 11th June when the offer will either be confirmed or extended.
Customers are unlikely to see a difference if the takeover does go ahead because prices are under the control of water regulator Ofwat.
UK water companies in foreign hands
Severn Trent is just one of several utilities companies now under foreign control. This is because utility companies have proved to be a strong investment, as they’re a good way to receive a steady income.
After the UK water industry was privatised in 1989 several new companies were formed and many of these have now been sold off.
In 2006 Thames Water was bought by a consortium which included the Australian investment group Macquarie and a Chinese wealth fund.
Yorkshire Water, which now supplies 4.7 million people, was snapped up in 2007 by another consortium, this time made up of Citigroup, HSBC, and the Singaporean sovereign wealth fund GIC.
Northumbria Water was also bought in 2011 by the Hong Kong-based company Cheung Kong Infrastructure Holdings.
Where your water company is based
The table below shows which water companies are owned by overseas investors. There are now 12 water companies, out of the 23 in the UK, which have foreign owners not including the proposed Severn Trent deal.
Water company |
British or overseas ownership |
Who owns it? |
Affinity Water (formerly Veolia Water Central, Veolia Water East, Veolia Water Southeast) |
Overseas |
US-based Morgan Stanley and UK-based Infracapital (investment fund managed by M&G). |
Anglian Water (includes Hartlepool Water) |
Overseas |
Osprey Acquisitions Limited - a consortium of several companies based in the UK, US and Canada. |
Bristol Water |
Overseas |
Split between Canada-based Capstone Infrastructure, Spain-based Grupo Agbar and Japan-based Itochu Corporation |
Cambridge Water |
Overseas |
Hong Kong-based Cheung Kong Infrastructure Holdings |
Cholderton and District Water |
British |
Independent water company |
Dee Valley Water |
British |
Independent water company |
Dwr Cymru Welsh Water |
British |
UK-based Glas Cymru |
Essex and Suffolk Water |
Overseas |
Hong Kong-based Cheung Kong Infrastructure Holdings |
Northern Ireland Water |
British |
Government-owned company |
Northumbrian Water |
Overseas |
Hong Kong-based Cheung Kong Infrastructure Holdings |
Portsmouth Water |
British |
UK-based South Downs Capital Ltd |
Scottish Water |
British |
Government-owned company |
Sembcorp Bournemouth Water (formerly Bournemouth and West Hampshire Water) |
Overseas |
Singapore-based Sembcorp |
Severn Trent Water |
British |
Severn Trent Plc |
South East Water |
Overseas |
Canada-based CDPQ and Australia-based Utilities Trust of Australia |
South Staffs Water |
Overseas |
US-based KKR |
South West Water |
British |
UK-based Pennon Group |
Southern Water |
British |
UK-based Southern Water Capital Limited
|
Sutton and East Surrey Water |
British |
UK-based East Surrey Holdings Limited
|
Thames Water |
Overseas |
Australia-based Kemble Water Holdings Ltd, part of the Macquarie group. |
United Utilities |
British |
Independent water company |
Wessex Water |
Overseas |
Malaysia-based YTL Corporation |
Yorkshire Water |
Overseas |
Citigroup, HSBC, and Singapore-based GIC. |
Do you agree with UK companies being sold overseas? Should the Government be doing more to keep them in British control? Let us know in the comment box below.
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Comments
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Essential utilities can not be classed as companies as by by their very name suggests we have to use them. All they have to do to make a profit is simply adjust their unit price's accordingly. A company on the other hand have to earn their profits by providing a good product at an affordable price as the customer can always say "no thank you".
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All British infrastructure - Railways, roads, water, electricity, telecoms, airports, ports, broadcasting financial institutions,etc etc should be at worst British owned, at best UK government owned. It is an axiom of existence that to grow and prosper you need to have a large measure of control over your own destiny Our present generation of limp-wristed, apologetic, spineless politicians are allowing everything that makes us a nation to just slide away into the hands of - well, who knows? The most obvious example is Europe. We are paying Europe an unfeasible amount of money (£361 a second) to enslave us. The sale of infrastructure to foreign concerns is less obvious but no less damaging, and once again, money pours out of the UK. We are very politely and fair-mindedly handing over everything we own while the worlds sharks circle and wait for the next luke-warm, liberal leaning, hand-wringing apology for a decision that allows another chunk of the UK to disappear into foreign pockets (anybody fancy a Russian owned NHS?) I shudder when I think of Farage as PM, but the only way we are going to shake free of the cold clammy grip of the two and a half party system and the small minded liberals that populate them is to vote UKIP in . This would make plain our opinion of current UK political practice and get us out from under the EU - the first step on the road to reclaiming Britain for the Brits.
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And now the government intends to privatise the Royal Mail on the grounds that it's a drain on the public purse, but lo and behold this week they announce record profits. I can't help feeling that 'call me Dave' is more interested in helping his rich, greedy mates to another slice of the pie than doing what's right for the taxpayer.
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04 March 2019