French energy group ENGIE has entered into a binding agreement to acquire all outstanding equity of UK Power Networks for £10.5 billion, the company announced on Thursday.
The transaction places UK Power Networks enterprise value at £15.8 billion. ENGIE said this corresponds to approximately 1.5 times the estimated Regulated Asset Value (RAV) as of end-March 2026. Including the contribution from unregulated activities, the purchase implies an estimated 2027 EBITDA multiple of roughly 10 times.
ENGIE noted that UK Power Networks had a RAV of £9.2 billion at end-March 2025. That RAV is projected to rise to £10.5 billion by the end of the current price control period in March 2028.
Financing structure and balance-sheet impact
The buyer plans to fund the acquisition through a combination of debt and hybrid issuance totalling about
ENGIE intends a disposal program of about
In addition, the group plans to raise up to through an accelerated book building for up to
Expected timing, approvals and financial consequences
ENGIE expects to complete the acquisition in mid-2026, subject to customary regulatory approvals. The agreement is also contingent on the approval of independent shareholders of the Hong Kong listed parent companies of the sellers.
The company said the deal should have an immediate positive effect on its results and will be accretive from the first full year after closing. ENGIE added it plans to preserve its investment grade credit rating and continue to support its dividend policy.
Combining the acquisition with the anticipated progress of the disposal plan over the year, ENGIE projects a net rise in capital employed of approximately of around
ENGIE also estimated the acquisition will increase the Group net financial debt by between and by end-2026.
Comments from management
Catherine MacGregor, ENGIE CEO, said the transaction is a decisive step to strengthen ENGIE as a leading energy transition utility and aligns with the group's ambition to play a major role in regulated electricity network infrastructures. She added the deal will support growth, lower the company's risk profile and increase visibility on future earnings.
Basil Scarsella, CEO of UK Power Networks, described the agreement as an important milestone for the company and its workforce. He said that becoming part of ENGIE will keep the business within a global energy group with the financial resources, industrial capacity and long-term vision to back its next phase of development.
Note on content: The article reflects the company-reported terms, financing plans, projected financial impacts and conditional approvals as presented in the announcement.