BlackRock set to acquire Thames Water contractor Lanes for over £300m
- BlackRock's private markets division is nearing a deal to acquire Lanes Group, a contractor for Thames Water.
- The acquisition is valued at over £300 million, with BlackRock outbidding other competitors.
- This move reflects BlackRock's increasing involvement in the water utility sector amid financial struggles faced by Thames Water.
In the UK, BlackRock's private markets division is nearing a deal to acquire Lanes Group, a key contractor for Thames Water, amid the utility's financial struggles. The acquisition is expected to be valued at over £300 million, with BlackRock having outbid other potential buyers. Lanes Group, based in Leeds, specializes in wastewater and drainage services, generating substantial revenue from Thames Water and other water utilities. The water industry is currently facing scrutiny from the new Labour government and regulatory bodies due to public concerns over waste and pollution. Thames Water is at risk of temporary nationalization as it seeks additional funding to avoid insolvency, with advisers exploring various rescue options, including private equity investments. The situation highlights the increasing involvement of major asset managers like BlackRock in sectors traditionally dominated by private equity firms, reflecting a shift in investment strategies within the market.