Engie to buy UK Power Networks for £10bn in milestone deal

French multinational utility Engie has signed an agreement to acquire 100% of UK Power Networks, the biggest electricity distributor in the UK.

The deal, due to close mid-2026 and valued at £10.5 billion ($14.2 billion), is designed to strengthen Engie’s position in regulated electricity networks in the UK, turning it into its second-largest country of activity.

UK Power Networks delivers 71TWh of electricity each year to 8.5 million customers, operates three distribution licenses covering London, the South East and East of England, and oversees a network of around 192,000km, three-quarters of which is underground. It is currently owned by CK Infrastructure Holdings, which is overseen by Hong Kong billionaire Li Ka-shing.

Engie calls the acquisition an essential step in rebalancing its infrastructure activities toward regulated electricity networks, which the chief executive Catherine MacGregor said are “essential for energy security, demand electrification and greater system flexibility".

She added that the deal "will both enhance the group’s growth trajectory and reduce our risk profile, providing more visibility on future earnings”.

The acquisition follows a train of grid investments and acquisitions by European utilities seeking to place their business within stable regulatory frameworks, such as Iberdrola’s acquisition of several British utilities, including Electricity North West in 2024.

Insights from Catherine MacGregor:
Engie boss MacGregor reveals gender diversity backlash fears
Energy sector will ‘transform the world for the better’ says Engie boss Catherine MacGregor

The acquisition is also expected to reinforce Engie’s position across the electricity value chain, especially in upstream renewables and flexible electricity and storage, and in downstream energy management and customer supply.

MacGregor said: “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, UK Power Networks chief executive, said the acquisition will provide support for the utility’s next phase of development, requiring “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.”

Shares jump and financing

Reuters reported that the announcement of the acquisition saw shares in Engie jump to a new high. Described as “transformative” by analysts at investment bank Jefferies, shares in Engie were up nearly 8% at €29.7 ($32.7) at 11:19 GMT today , heading for their biggest single-day rise since March 2017 and at their highest since February 2009.

Engie plans to finance the acquisition through a mix of debt and hybrid issuance for €5 billion ($5.9 billion), and a disposal program of €4 billion ($4.7 billion) by 2028.

Completion of the transaction is expected in mid-2026, subject to necessary regulatory approvals.

Engie acquired the share in UKPN from Hong Kong-listed CK Infrastructure Holdings (CKI), one of the world’s largest global infrastructure companies. CKI said it expects to secure a gain of approximately HK$14.5 billion ($1.9 billion). 

The transaction is also expected to have an immediate positive impact on Engie Group’s results, including a net recurring income Group share of between €4.6 billion ($5.4 billion) and €5.2 billion ($6.1 billion) in 2026, compared with the previously announced range of €4.2 billion ($5 billion) to €4.8 billion ($5.7 billion). 

MacGregor said in an earnings release: “The acquisition of UK Power Networks marks a major milestone in the implementation of our strategic priorities. By reinforcing our position in electricity networks, it confirms our ambition to become the best energy transition utility and will support our growth momentum while improving our risk profile.”