(Reuters) -British water utility group United Utilities has struck a 1.8 billion pound ($2.30 billion) deal to offload a chunk of its pension liabilities, Sky News reported on Monday.
The company signed an agreement with insurer Legal & General to make future payments to pension scheme members, the report said citing sources.
United Utilities and Legal & General did not immediately respond to Reuters' request for a comment.
Water companies have been in focus in recent weeks for their huge debt piles. They also have been under the political and regulatory scanner and faced public anger for conditions of infrastructure and dumping of raw sewage.
Britain's biggest water utility Thames Water said on Monday its investors had agreed to inject 750 million pounds ($960 million) into the company, helping to stave off the threat of nationalisation.
Shares in London-listed United Utilities were up 1.6% at 946 pence by 1340 GMT, as industry worries eased after Thames Water's announcement.
Peers Severn Trent (LON:SVT) and Pennon (LON:PNN)'s shares were also up more than 2%.
($1 = 0.7832 pounds)