Engie announced the acquisition during an earnings call, when it revised upward its outlook for the coming years.
The company, which produces and distributes gas and electricity, saidin a statementthat the acquisition of UK Power Networks "is an essential step in rebalancing its infrastructure activities toward regulated electricity networks".
It is looking to power distributors to buffer its business from fluctuations in the energy market caused by geopolitics.
Engie lost a major source of gas supplyfrom Gazpromfollowing Russias invasion of Ukraine in 2022, and US President Donald Trump last year froze three early-stage offshore wind projects in the United States.
Regulated assets like power distribution networks earn fixed fees based on the amount of electricity transported, and European consumption is set to rise as countries are increasingly encouraging theirtransportationand industrial sectors to electrify.
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UK Power Networks operates 192,000 kilometres of power lines serving 8.5 million customers across London and the southeast and eastern parts of England.
Engie will buy the distributor from CK Infrastructure Holdings, a Hong Kong based energy investment group. The deal is expected to close mid-2026, subject to regulatory approvals.
The acquisition will make Britain the companys second-largest country of activity, after France.
(with Reuters)
Originally published on RFI
