BlackRock, the world’s largest asset manager, is reportedly making a move to acquire a significant stake in Lanes Group, a major contractor to Thames Water, as the UK’s largest water utility faces potential collapse.
According to sources familiar with the matter, BlackRock’s private markets division is one of several remaining bidders for Lanes Group, which is headquartered in Leeds. It is believed that there are other interested parties involved in the bidding process as well.
Lanes Group, which provides wastewater and drainage services, is valued at up to £350m, according to banking sources. BlackRock, led by chairman Larry Fink, is known for its massive $10.65trn in assets under management and has been increasingly active in bidding processes typically dominated by private equity firms.
Thames Water, one of Lanes Group’s major clients, is facing significant financial challenges and is at risk of temporary nationalisation. The company has been under intense scrutiny from the government, regulator Ofwat, and other stakeholders due to public outcry over wastage and pollution levels.
Reports indicate that Thames Water could run out of funds within ten months unless it is able to secure additional equity. This has prompted BlackRock, along with other potential buyers, to consider investing in Lanes Group.
Neither BlackRock nor Lanes Group have provided any comments on the matter. However, sources suggest that BlackRock’s interest in Lanes Group is a strategic move to expand its portfolio and diversify its investments.
