£10.5 bn deal for UKPN announced by ENGIE

ENGIE has announced the acquisition of UK Power Networks, acquiring 100% of the company regarded as the best-in-class electricity distributor in the UK, for an equity value of £10.5 billion.

This acquisition marks a major milestone in ENGIE’s 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. The enterprise value of the company (at 100%) stands at £15.8 billion.

With 71 TWh of electricity delivered each year to its customers and supported by 6,500 employees, UKPN is a leading electricity distribution operator in the UK. 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.

The firm has a track record of outstanding operational performance (ranking number one by the regulator over the 2015-2023 period among UK’s DNOs) and one of the highest customer satisfaction levels in the sector, within a stable and transparent regulatory framework that provides visibility to investors. UKPN will play a key role in supporting the expected growth in electricity demand in the UK and meeting the major electrification needs required to achieve the country’s carbon-neutrality ambitions. UKPN’s Replacement Asset Value amounted to £9.2 billion at end-March 2025 and is expected to reach £10.5 billion at the end of the current price control period in March 2028. An excellent strategic fit for ENGIE, fully consistent with its capital allocation policy.

By its outstanding quality and its significant size, this acquisition is an essential step in rebalancing its infrastructure activities toward regulated electricity networks and strengthens its footprint in one of its key countries.

This transaction will enhance both ENGIE’s growth profile and risk profile via a higher share of regulated and predictable revenues and cash flows.

It will also reinforce ENGIE’s position across the electricity value chain, complementing its leading roles in upstream renewables and flexible electricity and storage, and in downstream energy management and customer supply.

Completion of the transaction is expected in mid-2026, subject to certain regulatory approvals, and is also conditional on approval by the independent shareholders of the Hong-Kong listed parent companies of the sellers.

Catherine MacGregor,

Catherine MacGregor, ENGIE CEO, 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”.

Basil Scarsella

Basil Scarsella, UK Power Networks CEO, said:

“This transaction marks an important milestone in the history of UKPN and for all its employees. 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 as UKPN embarks on a period of significant investment in our network to enable economic growth in London, the South East and East of England. It will reinforce our ability to serve our 8.5 million customers with the highest standards of safety, customer service, and reliability. We share ENGIE’s strategic ambition and values and are excited to embark on this new chapter together, ensuring a smooth transition for our teams and continued excellent service for the communities we serve”.