Engie is set to take ownership of UK Power Networks from CK Infrastructure Holdings
in a deal said to be worth £10.5 billion. Subject to regulatory approvals, the acquisition is expected to take effect in mid 2026.
Engie is a French multinational utility company in which the French state has a 23% share. The FT said Engie planned to finance the acquisition through €4 billion of asset sales, new debt and a €3 billion capital raising.
UK Power Networks serves 8.5 million customers in London and the east and southeast. It said that within Engie it would “be part of a global energy leader with the financial strength, industrial capabilities and long-term vision to support our next phase of development “.
In a note following the announcement rating agency Moody’s said that “the acquisition will in our view modestly strengthen Engie’s business risk profile because it increases the group’s exposure to regulated electricity networks in the UK, which benefit from an established and supportive regulatory framework”. It also said, “The transaction will also enhance Engie’s market and geographic diversification, albeit to a limited extent because Engie is already very well diversified globally”.