Adia's Unwavering Exit: A Stake in Troubled Waters

Abu Dhabi Investment Authority has written off its nearly 9.9% stake in Thames Water, one of the UK's utility giants, due to regulatory and performance issues. The write-off comes as Thames Water faces severe financial strains amidst criticisms over its operations and looming government intervention.

The Abu Dhabi Investment Authority (Adia) has decided to write off its 9.9% stake in Thames Water, a British utility company currently embroiled in significant controversy. The decision, reported by the Financial Times, comes amid a challenging regulatory climate and ongoing operational struggles faced by Thames Water.

Serving 16 million people in and around London, Thames Water is at the heart of a crisis characterized by unchecked sewage dumping and deteriorating infrastructure. The situation has been compounded by heavy debts. Adia's divestment followed a comprehensive review, which downgraded its stake from 263 million pounds to a mere 1 pound, reflecting the severe outlook.

This financial turmoil in Britain's utility sector coincides with upcoming economic announcements from British finance minister Rachel Reeves. As Reeves prepares to present her first budget, businesses are hoping for assurances that will encourage investments. Meanwhile, without a viable rescue plan, Thames Water faces possible government intervention and an undesirable path towards a special administration regime.

(With inputs from agencies.)