Goldman Sachs is teaming up with Allianz, Europe’s largest insurance company, to make a £2bn bid for a 30% stake in Yorkshire Water, according to the Sunday Times.

They are expected to have plenty of competition at the auction as water utilities in the UK are seen as “safe-havens” for investors, with Yorkshire Water particularly profitable.

Yorkshire Water was bought in 2008 for £3bn by a consortium of investors led by Citigroup, but the utility could now be worth more than £5bn.

Earlier this year, there were reports that Citigroup was looking to sell 17% of its 37% stake and the infrastructure arm of M&G, Infracapital, plans to sell its entire 13% holding.

Yorkshire Water has recently come under fire from MPs after it transpired that it paid no corporation tax last year in spite of making £186m in profits and paying dividends of £256m to its investors.

Bids for the company are due by the middle of next month, the Sunday Times said.