In an announcement on Sunday, National Grid confirmed it had sold a 60% equity interest in its UK gas transmission and metering business to Macquarie Asset Management & British Columbia Investment Management Corporation.
National Grid is responsible for the gas pipeline infrastructure in the UK that services homes and businesses. The sale reaffirms National Grid’s intent to focus on electricity, whilst Macquarie said the deal would play a role in enabling the UK to achieve its net-zero targets.
The agreement will allow National Grid to rebalance its portfolio and increase electricity assets from 60% to 70%. The remaining 40% of National Grid can be purchased by the consortium between 1st January 2023 and 30th June 2023.
John Pettigrew, Chief Executive of National Grid, said:
“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. Alongside our plans to invest up to £35 billion in energy infrastructure over the next five years, the series of transactions announced last March will strengthen our long-term growth prospects, and drive long-term value for shareholders.
Today’s announcement is a strong result for all our stakeholders, including employees and customers. The Consortium has a long-term commitment to the UK with significant experience in owning and operating infrastructure assets. I look forward to our partnership and continuing to deliver safe and reliable gas service at the least cost to consumers. I would also like to thank my colleagues in Gas Transmission and Metering for their hard work that has helped us reach this important milestone.”