Terra Firma, the buy-out firm spun out of Nomura by Guy Hands, is set to strike its first deal after it entered exclusive talks with Waste Recycling Group (WRG) in the UK.

Kelda, the UK water and sewerage firm, has agreed to sell its 46% stake in WRG at a minimum price of 285p per share. This values the whole company at £336m (€492m). The directors of WRG have said it is in talks with Terra Firma, which may or may not lead to an offer for the company, with exclusivity granted to Terra Firma for the next eight weeks.