A group led by JPMorgan Chase & Co has agreed to purchase the utilities firm, Southern Water, from Royal Bank of Scotland (RBS).
The deal, costing $2.6 billion, means that rival bidder Goldman Sachs will miss out on the firm, according to Reuters.
Southern Water was valued at $8.5 billion, including a $5.7 million debt. The company provides water to over two million people in southern England and water companies are generally viewed as attractive investments due to their stable cashflows.
“Southern Water has significant real per annum growth rate, double the industry average and that’s what made it so attractive to us. There are significant operating efficiency gains to be had out of this company,” says Steve Bickerton, Challenger chief executive, speaking to Reuters.
RBS put the utilities company up for sale after putting together a massive cash bid for Dutch bank ABN Amro.