The creditor group seeking to rescue Britain’s largest water company has chosen a former senior Labour minister to lead the board if its rescue plan goes ahead. London & Valley Water, the consortium backing the roughly £10 billion deal for Thames Water, said on Tuesday that Lord John Hutton had been picked as independent chair designate, subject to approval of the takeover.
Lord Hutton, described by the consortium as independent, is a prominent former Labour minister. The appointment is contingent on the consortium’s deal being accepted and any necessary regulatory and governmental approvals being granted.
The move forms part of the creditors’ effort to shore up confidence in their proposal and to persuade ministers and regulators to back the transaction. The consortium says the nomination of a high-profile, independent chair is intended to strengthen governance and provide a clear point of leadership for the company should the takeover be completed.
Thames Water, which supplies water and wastewater services across large parts of England, has been at the centre of a prolonged financial and operational crisis. Creditors have proposed the takeover as a route to stabilise the company’s finances, but approval is needed from multiple parties, including the government, which has voiced concerns in the past about protections for customers and long-term investment in the sector.
London & Valley Water said the selection of Lord Hutton was a further step in its ongoing discussions with stakeholders. The appointment will only take effect if the consortium’s rescue package is formally approved and the proposed board changes are implemented.