Engie agreed on 25 February to acquire UK Power Networks, the distributor serving London, the South East and the East of England, for an equity value of £10.5bn, valuing the business at £15.8bn including debt.
Why ENGIE SA is buying UK Power Networks
Engie said the deal shifts its infrastructure business towards regulated electricity networks, adding predictable revenues and lowering its risk profile. It expected the acquisition to be immediately positive for results and accretive from the first full year after completion, while preserving its credit rating and dividend policy.
Deal terms and financing
The price represents about 1.5 times UK Power Networks' estimated regulated asset value at the end of March 2026 and about 10 times estimated 2027 EBITDA, including unregulated assets. Engie planned about €5bn of debt and hybrid issuance, an accelerated bookbuild of up to €3bn and a disposal programme of about €4bn by 2028.
Regulatory approvals and timing
The deal required customary regulatory approvals and the backing of independent shareholders in the Hong Kong-listed parent companies of the sellers. Engie announced completion in May 2026, nearly two months ahead of the original mid-2026 timetable, according to MarketScreener.
Market context
UK Power Networks serves 8.5 million customers, distributes 71 TWh a year over about 192,000 km of network and employs about 6,500 people. Its regulated asset value was £9.2bn at the end of March 2025.
