ENGIE on February 25, 2026, announced the signing of an agreement of 100% of acquisition of UK Power Networks – UKPN which apparently happens to be the best-in-class electricity distributor in the UK, for an equity value worth £10.5 billion.
Notably, this acquisition goes on to mark a major milestone in the ambition of ENGIE in order to become the best energy transition utility, through making its position in the regulated electricity networks more robust and reliable. It will also help push the presence of the group in the UK, which is all set to become its second-largest country of activity.
The enterprise value when it comes to the company at 100% stands at around £15.8 billion, corresponding, for regulated activities, to a multiple of c.1.5x, the Regulated Asset Value – RAV went on to estimate as of end-March 2026, and an anticipated 2027 EBITDA multiple of c.10x, which includes the additional contribution as far as the unregulated assets are concerned.
UK Power Networks – the best-in-class electricity distribution network in the UK indeed
With a massive 71 TWh of electricity delivered every year to 8.5 million customers and also supported by 6,500 employees, UKPN is indeed a leading electricity distribution operator based out of the UK. It goes on to function three distribution licenses that cover London, the Southeast, and the East of England and represents a network of somewhere around 192,000 km, three-quarters of which happens to be located underground. The company has a track record of outstanding operational performance, which is ranked number one by the regulator over the period between 2015 and 2023 among DNOs of the UK, and one of the highest customer satisfaction levels within the sector, within a balanced as well as a transparent regulatory framework that offers visibility to the investors. UKPN is going to play a major role in terms of supporting the anticipated growth in electricity demand in the UK and also meeting the prominent electrification needs that are needed to attain the carbon-neutrality ambitions of the country.
RAV from UKPN amounted to £9.2 billion at the March 2025 end and is projected to reach £10.5 billion at the present price control period end in March 2028.
A phenomenal strategic fit for ENGIE, entirely consistent with its capital allocation policy
Through its outstanding quality along with its major size, this 100% of acquisition of UK Power Networks is indeed a necessary step when it comes to rebalancing its infrastructure activities towards regulated electricity networks and simultaneously helps to make its footprint stronger in one of its major countries. Via this acquisition, the rebalancing by ENGIE is majorly achieved in one move, thereby minimizing the execution risk and also offering strong visibility in terms of capital allocation in the years to come. This kind of transaction is sure to enhance both the growth profile and the risk profile of ENGIE by way of a higher share of regulated, predictable revenues along with cash flows.
It is also going to reinforce the position of ENGIE all across the electricity value chain, hence complementing leading roles when it comes to upstream renewables along with flexible electricity and storage, as well as downstream energy management and, of course, customer supply.
It is well to be noted that this transaction is most likely to have an immediate positive impact on the results of the group and to be accretive from the very first full year post completion of the acquisition, while at the same time preserving the credit rating of ENGIE and also supporting the attractive dividend policy that it has.
Transaction financing and timeline
ENGIE looks forward to financing this acquisition by way of a mix of debt as well as hybrid issuance for c.€5 billion, and also with a disposal program of c.€4 billion by 2028.
The Group looks forward to raising up to €3 billion in equity via an accelerated book building – ABB so as to support the long-term commitment that it has toward a robust investment-grade rating. After acquisition, ENGIE is apparently going to retain major flexibility when it comes to its capital spending along with its assets portfolio so that it rolls out its organic growth plans pretty extensively in renewables and across networks and delivers strong returns to shareholders sans further equity support over the next years.
Interestingly, the completion of the transaction is most likely going to happen in mid-2026, subject to a few regulatory checks and approvals, which are mandatory for this kind of a transaction. The transaction is also conditional in terms of approval by the independent shareholders of the parent companies of the sellers that are Hong Kong listed.
The overall effect when it comes to the acquisition, along with the anticipated progress of the disposal plan in the year, should go ahead and generate a net increase of almost €17 to €19 billion of the capital employed by the group at the end of 2026. Due to the chosen financing arrangements, this transaction is most likely to lead to a rise in the net financial debt of the group between €13 and €15 billion by 2026 end.
ENGIE CEO Catherine MacGregor said, “The acquisition of UKPN represents a decisive step in strengthening ENGIE’s position as the best energy transition utility. It is fully aligned with our ambition to become a key player in regulated electricity network infrastructures, which are essential for energy security, demand electrification, and greater system flexibility. This transaction will both enhance the Group’s growth trajectory and reduce our risk profile, providing more visibility on future earnings. It also enables us to reinforce our position in the United Kingdom, a key country with a stable regulatory framework and clear decarbonization targets. We are proud to join forces with UKPN’s talented teams as we embark on this new chapter together.”
CEO of UK Power Networks, Basil Scarsella, said, “This transaction marks an important milestone in the history of UKPN and for all its employees. By joining ENGIE, we continue to be part of a global energy leader with the financial strength, industrial capabilities, and long-term vision to support our next phase of development as UKPN embarks on a period of significant investment in our network to enable economic growth in London, the Southeast, and the East of England. It will reinforce our ability to serve our 8.5 million customers with the highest standards of safety, customer service, and reliability. We share ENGIE’s strategic ambition and values and are excited to embark on this new chapter together, ensuring a smooth transition for our teams and continued excellent service for the communities we serve.”
It is worth noting that as far as this transaction was concerned, ENGIE was advised by the Bank of America, Rothschild & Co, and BNP Paribas, as they were its financial advisors.
