ENGIE Acquires UK Power Networks for £10.5 Billion
ENGIE announced on Wednesday the signing of an agreement for the acquisition of 100% of UK Power Networks, the leading electricity distributor in the United Kingdom. Valued at £10.5 billion in equity value, this transaction redefines the French group's presence across the Channel and accelerates its repositioning towards regulated electrical networks.
Details of the Acquisition
ENGIE commits to acquiring the entirety of UK Power Networks for an equity value of £10.5 billion, which corresponds to an enterprise value of £15.8 billion. The transaction represents a multiple of approximately 1.5 times the Estimated Regulated Asset Value as of the end of March 2026, and an EBITDA multiple for 2027 of around 10x. UK Power Networks currently distributes 71 TWh of electricity annually to 8.5 million customers through three licenses covering London, the Southeast, and the East of England, with a network of about 192,000 km, three-quarters of which are underground. The company employs 6,500 staff and was ranked number one by the British regulator for the period 2015-2023 among distribution network operators.
Financing the Deal
The financing relies on a combination of debt and hybrid issuances for approximately €5 billion, a divestment program of around €4 billion until 2028, and an accelerated equity placement of up to €3 billion. By the end of 2026, this operation is expected to generate a net increase of €17 to €19 billion in employed capital and an increase in net financial debt ranging from €13 to €15 billion. The completion of the transaction is scheduled for mid-2026, subject to customary regulatory approvals and the approval of the independent shareholders of the sellers' parent companies, listed in Hong Kong. ENGIE believes that the operation will have an immediate positive impact on its results and will be accretive from the first full year following completion.
Strategic Implications
This acquisition consolidates ENGIE's presence in the United Kingdom, which will become its second largest country in terms of activity. It aligns with the group's ambition to become the leading utility in the energy transition by strengthening its position in regulated electricity networks. The transaction enhances the growth profile and reduces the risk profile of the group by increasing the share of regulated and predictable revenues and cash flows. UK Power Networks benefits from a stable and transparent regulatory framework that provides visibility to investors.
