UK’s National Grid to sell 60% gas unit stake to Australia’s Macquarie, Canada’s BCI
- Deal, worth billions, with Macquarie Asset Management, British Columbia Investment Management Corporation, as grid shifts towards electricity
- Announcement comes as Europe’s gas market sees soaring energy prices, exacerbated by Russia’s invasion of Ukraine
Britain’s National Grid said on Sunday it would sell a 60 per cent stake in its British gas transmission and metering business to Australia’s Macquarie Asset Management and Canada’s British Columbia Investment Management Corporation as it shifts towards electricity.
The deal implies an enterprise value for the unit of about 9.6 billion pounds (US$12.7 billion), the company said in a statement.
National Grid will receive about 2.2 billion pounds in cash and about 2 billion pounds from additional debt financing following completion of the deal.
“This transaction further enhances our role in delivering the UK’s energy transition, pivots our portfolio towards electricity, whilst ensuring the security of the energy supply for the country,” John Pettigrew, chief executive officer of National Grid said.
The company’s announcement comes as Europe’s tight gas market has sent wholesale energy prices soaring, exacerbated by the Russian invasion of Ukraine.
Multiple energy suppliers in Britain have gone out of business since September as prices in the country have rocketed and the regulator Ofgem’s price cap prevented suppliers passing on rising costs to customers.