Global bank Citigroup is in the process of selling 17 percent of its interests in the water utility company while fund manager M&G is set to put up its 13 per cent stake.
The Goldman Sachs and Allianz approach is expected to face stiff competition from other leading investors as the water industry has become an increasingly attractive investment for investors expecting a steady return on their capital.
Yorkshire Water was formed from the Yorkshire Water Authority, one of ten regional water authorities created by the Water Act in 1973
It was privatised in 1989, when Yorkshire Water plc, the parent company of the Yorkshire Water business, floated on the London Stock Exchange.
The parent company diversified and changed its name to Kelda Group in 1999. The company’s operating subsidiaries are Yorkshire Water Services, Yorkshire Water Enterprises and Yorkshire Environmental Solutions.
In February 2008, Kelda Group was bought by a consortium of companies.
A spokesman for Yorkshire water said the water company “does not comment on market speculation.”
Both Goldman Sachs and Allianz had “no comment” on any approach for a stake in Yorkshire Water.
A source familiar with the situation confirmed the approach from Goldman Sachs and Allianz but would not put a monetary figure on the deal.