ENGIE has struck one of the biggest energy deals the UK has seen in years, agreeing to buy UK Power Networks in a £10.5bn acquisition that reshapes the country’s electricity infrastructure landscape and cements the French group’s push into regulated networks.
The deal values UK Power Networks at an enterprise value of £15.8bn and makes the UK ENGIE’s second-largest market globally.
UKPN has been owned for the past 15 years by Hong Kong based CK Infrastructure Holdings who originally purchased the network from EDF.
The acquistion marks a decisive shift in strategy as ENGIE doubles down on stable, regulated electricity assets at the heart of the energy transition.
UK Power Networks delivers around 71TWh of electricity each year to 8.5 million customers across London, the South East and East of England, operating nearly 192,000km of network, much of it underground.
It has consistently ranked top among Britain’s distribution network operators for performance and customer satisfaction and will sit at the centre of rising electricity demand driven by electrification and net zero targets.
Catherine MacGregor, ENGIE’s chief executive, said: “The acquisition of UKPN represents a decisive step in strengthening ENGIE’s position as the best energy transition utility. It is fully aligned with our ambition to become a key player in regulated electricity network infrastructures, which are essential for energy security, demand electrification and greater system flexibility.”
ENGIE is paying £10.5bn for the equity with the transaction structured around a mix of debt, disposals and new equity.
The group plans around €5bn (£4.3bn) of debt and hybrid issuance, a €4bn (£3.4bn) disposal programme by 2028 and up to €3bn (£2.6bn) raised through an accelerated bookbuild to protect its investment-grade credit rating.
She added that the deal would “enhance the Group’s growth trajectory and reduce our risk profile, providing more visibility on future earnings” while reinforcing ENGIE’s presence in a “key country with a stable regulatory framework and clear decarbonation targets”.
For UK Power Networks, the takeover brings deep balance-sheet backing at a moment of heavy investment.
Chief executive Basil Scarsella said: “By joining ENGIE, we continue to be part of a global energy leader with the financial strength, industrial capabilities and long-term vision to support our next phase of development.”
He said the deal would reinforce UKPN’s ability to serve customers “with the highest standards of safety, customer service and reliability” as investment ramps up to support growth and electrification.
Completion is expected in mid-2026, subject to regulatory and shareholder approvals.
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