French energy group Engie SA (EU:ENGI) has agreed to acquire UK Power Networks in a deal valuing the UK electricity distribution operator at a £10.5 billion equity price, marking a major expansion of ENGIE’s regulated infrastructure portfolio.
The transaction assigns an enterprise value of approximately £15.8 billion to UK Power Networks, equivalent to around 1.5 times its projected regulated asset value as of March 2026 and roughly 10 times forecast 2027 EBITDA, including contributions from non-regulated activities.
UK Power Networks reported a regulated asset value of £9.2 billion at the end of March 2025, which is expected to increase to £10.5 billion by the conclusion of the current regulatory price control period in March 2028.
ENGIE said it will fund the acquisition through a combination of financing measures, including around €5 billion raised via debt and hybrid instruments, alongside a planned divestment programme targeting approximately €4 billion by 2028. The company also intends to raise up to €3 billion through an accelerated book-building equity offering to maintain its commitment to a strong Investment Grade credit profile.
The company expects the acquisition to deliver an immediate positive contribution to earnings and to be accretive from the first full year after completion, while supporting both its credit rating and dividend policy.
Completion of the transaction is anticipated in mid-2026, subject to regulatory clearances and approval from independent shareholders of the sellers’ Hong Kong-listed parent companies.
ENGIE estimates that, together with progress on its divestment programme, the deal will increase group employed capital by approximately €17–19 billion by the end of 2026. Net financial debt is expected to rise by between €13 billion and €15 billion over the same period.
Catherine MacGregor, CEO of ENGIE, stated that the acquisition represents a decisive step in strengthening ENGIE’s position as a leading utility for the energy transition and is fully aligned with the company’s ambition to become a key player in regulated electricity grid infrastructure. The transaction will enhance the Group’s growth trajectory and reduce its risk profile, providing greater visibility into future earnings, MacGregor stated.
Basil Scarsella, CEO of UK Power Networks, said the transaction marks a significant milestone in the history of UK Power Networks and for all its employees. By joining ENGIE, the company continues to be part of a global energy leader with the financial strength, industrial capabilities, and long-term vision to support its next phase of development, Scarsella said.
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