UK’s National Grid to sell 60% stake in gas unit to Macquarie, BCI

LONDON: Britain’s National Grid said on Sunday it would sell a 60 percent stake in its British gas transmission and metering business to Australia’s Macquarie Asset Management and British Columbia Investment Management Corp. as it shifts toward electricity.

The deal implies an enterprise value for the unit of about £9.6 billion ($12.7 billion), the company said in a statement.

Macquarie said its investment will ensure the transmission system will play a leading role in delivering the UK’s net-zero by 2050 target, by supporting hydrogen’s role in the energy mix.

National Grid will receive about £2.2 billion in cash and about £2 billion 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.