Planned £5bn HICL-TRIG Merger Abandoned Following Shareholder Opposition

A proposed £5bn merger between UK infrastructure investors HICL and The Renewables Infrastructure Group (TRIG) has been called off after shareholders raised objections to the structure of the deal.

The merger, initially announced on 17 November, would have involved the voluntary winding up of TRIG, with its assets transferred to HICL in exchange for HICL shares and a £350m liquidity package. However, the plan reportedly offered a cash-out option only for TRIG shareholders, creating a perceived imbalance in benefits between the two parties.

Had it proceeded, the merger would have created one of the largest listed infrastructure investment trusts in the UK. But opposition from institutional investors—including CG Asset Management, which holds nearly 1% of HICL—questioned the valuation and overall structure of the deal.

HICL’s investors were reportedly concerned about the differing risk profile of TRIG’s assets. HICL focuses on lower-risk, stable public-private partnership (PPP) and core infrastructure projects, including critical national infrastructure such as London St Pancras station, Hornsea 2 windfarm, the M1-A1 Link Road, and the M80 motorway. TRIG, by contrast, invests primarily in higher-yielding renewable energy infrastructure, which carries greater volatility.

The HICL board stated that it could not proceed without the support of a substantial majority of its shareholders, reflecting concerns over exposure to renewable energy risk.

TRIG investors were also hesitant, with uncertainty in the UK renewable subsidy regime, rising interest rates, and fluctuating energy prices contributing to weak market sentiment and lower trading values for renewable-focused investment trusts. The TRIG board expressed regret that shareholders would not have the chance to vote on the merger, which would have formed the UK’s largest listed infrastructure investment company.

TRIG Chair Richard Morse confirmed the company would now continue executing its independent strategy. He emphasised the company’s strong platform, high-quality assets, and expertise in renewables and energy storage. Morse highlighted the opportunity to benefit from the growing demand for low-carbon power across the UK and Europe, supporting shareholder value and sustainable growth.