ENGIE to acquire UK Power Networks for £10.5 billion
#ENGIE acquisition #UK Power Networks #£10.5 billion deal #Energy transition #Regulatory assets #Strategic expansion #Corporate finance #Energy infrastructure
📌 Key Takeaways
- ENGIE has agreed to acquire UK Power Networks for £10.5 billion equity value
- The acquisition will be financed through debt, hybrid issuance, equity raising, and asset disposals
- The transaction is expected to be immediately accretive to ENGIE's results
- Completion is anticipated in mid-2026 subject to regulatory approvals
📖 Full Retelling
French utility company ENGIE announced Thursday, February 26, 2026, its agreement to acquire 100% of UK Power Networks for an equity value of £10.5 billion, aiming to strengthen its position in the energy transition sector and expand its presence in regulated electricity network infrastructures. The enterprise value of the transaction stands at £15.8 billion, corresponding to approximately 1.5 times the estimated Regulated Asset Value as of end-March 2026 and an estimated 2027 EBITDA multiple of about 10 times, including unregulated assets. UK Power Networks' Regulated Asset Value reached £9.2 billion at end-March 2025 and is projected to grow to £10.5 billion by March 2028, the end of the current price control period. To finance this substantial acquisition, ENGIE plans to utilize a combination of debt and hybrid issuance totaling approximately €5 billion, alongside a disposal program worth about €4 billion by 2028. The company also intends to raise up to €3 billion through an accelerated book building to maintain its investment grade rating. According to ENGIE, the transaction is expected to have an immediate positive impact on the company's financial results and be accretive from the first full year following completion, while preserving ENGIE's credit rating and supporting its dividend policy. The completion of the transaction, subject to regulatory approvals and independent shareholder approval of the Hong Kong-listed parent companies of the sellers, is anticipated in mid-2026. The combined effect of the acquisition and disposal plan is expected to increase ENGIE's capital employed by approximately €17 to €19 billion by end-2026, while raising net financial debt between €13 and €15 billion. ENGIE CEO Catherine MacGregor emphasized that this acquisition aligns with the company's ambition to become a key player in regulated electricity networks, while UK Power Networks CEO Basil Scarsella highlighted the benefits of joining a global energy leader with substantial financial resources and long-term vision.
🏷️ Themes
Corporate Mergers & Acquisitions, Energy Sector Transformation, Infrastructure Investment
📚 Related People & Topics
UK Power Networks
Electricity network operator in parts of England
UK Power Networks (UKPN) is a distribution network operator for electricity covering South East England, the East of England and London. It manages three licensed distribution networks (Eastern Power Networks, South Eastern Power Networks and London Power Networks) which together cover an area of 30...
Energy transition
Significant structural change in an energy system
An energy transition (or energy system transformation) is a major structural change to energy supply and consumption in an energy system. Currently, a transition to sustainable energy is underway to limit climate change. Most of the sustainable energy is renewable energy.
Entity Intersection Graph
No entity connections available yet for this article.
Original Source
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Nasdaq ends more than 1% higher as Nvidia rises pre-earnings, tech extends rebound Gold prices head for fifth day of gains in six; JPMorgan sees more upside Analysis-Nvidia’s CEO prepares investors for a renewed battle with Intel, AMD Nvidia set to report strong results and guidance, analysts say (South Africa Philippines Nigeria) ENGIE to acquire UK Power Networks for £10.5 billion By Maria Ponnezhath Author Maria Ponnezhath Stock Markets Published 02/26/2026, 12:56 AM ENGIE to acquire UK Power Networks for £10.5 billion 0 ENGIE 2.08% Investing.com -- French utility company Engie SA (EPA:ENGIE) announced Thursday it has signed an agreement to acquire 100% of UK Power Networks for an equity value of £10.5 billion. The enterprise value of the company stands at £15.8 billion, corresponding to a multiple of approximately 1.5 times the estimated Regulated Asset Value as of end-March 2026 and an estimated 2027 EBITDA multiple of approximately 10 times, including the additional contribution of unregulated assets. UK Power Networks’ Regulated Asset Value amounted to £9.2 billion at end-March 2025 and is expected to reach £10.5 billion at the end of the current price control period in March 2028. Don’t miss fast-moving market developments. InvestingPro gives you live headlines, analyst notes, and data as it happens ENGIE plans to finance the acquisition through a mix of debt and hybrid issuance for approximately €5 billion, and a disposal program of approximately €4 billion by 2028. The company also intends to raise up to €3 billion equity through an accelerated book building to support its long term commitment to a strong investment grade rating. The transaction is expected to have an immediate positive impact on the Group’s results and to be accretive from the first full year following completion of the acquisition, while preserving ENGIE’s credit rating and supporting its dividend policy. Completion of the transac...
Read full article at source