LONDON: Utility group National Grid has agreed to sell a controlling stake in Britain’s gas network for £4.2 billion (5.0 billion euros, $5.5 billion) to an Australian-Canadian investment consortium.
The company will sell a 60-percent share of its gas division to a consortium including Australian bank Macquarie in order to refocus on electricity, it said Sunday.
“National Grid … has agreed to sell a 60-percent equity interest in its UK gas transmission and metering business to a consortium of long-term infrastructure investors,” it said in a statement.
The consortium also comprises Canada’s British Columbia Investment Management Corporation.
National Grid, which distributes energy to British homes and businesses, will retain a 40-percent share.
The deal is also aimed at “enhancing” the company’s role in the energy transition, as the UK government eyes a 2050 net zero carbon target.
“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,” said Chief Executive John Pettigrew.
The deal, due to complete in the second half, values the entire unit at £9.6 billion.
The agreement also gives the consortium an option to purchase the remaining stake.
National Grid had flagged the possible sale last year, prior to the Ukraine conflict that sent gas prices spiking to recent record highs on concerns over Russian supplies.