Engie to Acquire UK Power Networks in £10.5BN Deal

French energy giant Engie has agreed a £10.5BN ($14.2BN) deal to acquire UK Power Networks (UKPN), the UK’s largest electricity distribution network operator.

UKPN operates three distribution licences covering London, the South East and the East of England, managing more than 192,000km of network infrastructure and serving around 8.5 million customers. The company plays a key role in supporting high-energy-demand sectors such as data centres, offering specialist high-voltage and end-to-end grid connections.

In November, UKPN became the first DNO to partner with the Data Centre Alliance, aiming to accelerate and simplify grid connections for data centre developments.

Engie said the acquisition aligns with its strategy to rebalance its infrastructure portfolio toward regulated electricity networks, strengthening its position in energy transition and electrification.

Catherine MacGregor, Engie chief executive, described the deal as a “decisive step” in reinforcing the group’s focus on regulated network infrastructure.

“These networks are essential for energy security, demand electrification and greater system flexibility,” she said, adding that the transaction would enhance growth while reducing risk and providing greater earnings visibility.

Engie plans to finance the acquisition through a mix of €5BN ($5.87BN) in debt and hybrid issuance, a €4BN ($4.69BN) disposal programme by 2028, and up to €3BN ($3.5BN) in equity via an accelerated book build.

Completion is expected by mid-2026, subject to regulatory approval.

UKPN chief executive Basil Scarsella said joining Engie would provide the financial strength and industrial expertise needed to support significant investment in the network as electrification accelerates across the UK.

In recent years, UKPN has been trialling AI-driven network management tools and completed the UK’s first smart substation in Maidstone as part of its Constellation programme, designed to optimise power flows and future-proof grid capacity.

Engie, headquartered in Paris, operates more than 57GW of renewable and battery storage capacity globally.