France's Engie to buy UK Power Networks for £10.5bn

(Sharecast News) - French utility Engie has agreed to buy UK Power Networks (UKPN) for £10.5bn. Announcing the deal on Wednesday, Engie said it marked "a major milestone" in its ambition to become the best energy transition utility, by strengthening its position in regulated electricity networks. It will also bolster the group's presence in the UK, which will become its second-largest country of activity.

Engie noted that UKPN serves around 8.5m customers. It operates three distribution licenses covering London, the South East and East of England, representing a network of around 192,000 km, three-quarters of which is underground.

It said the company has a track record of outstanding operational performance and one of the highest customer satisfaction levels in the sector, "within a stable and transparent regulatory framework that provides visibility to investors".

Engie chief executive Catherine MacGregor 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.

"This transaction will both enhance the group's growth trajectory and reduce our risk profile, providing more visibility on future earnings. It also enables us to reinforce our position in the United Kingdom, a key country with a stable regulatory framework and clear decarbonation targets. We are proud to join forces with UKPN's talented teams as we embark on this new chapter together."