Macquarie Asset Management has exercised its option to acquire the remaining 20% equity interest in National Gas from National Grid, achieving full ownership.
National Gas, which owns and operates the UK’s 7,660km gas transmission system, is a critical infrastructure asset that delivers energy across the country.
The system facilitates the transportation of energy to power stations, industries and homes, while also maintaining more than six million gas meters.
Following this transaction, a consortium led by Macquarie will hold complete control over National Gas.
The consortium, which includes Macquarie and British Columbia Investment Management Corporation, initially purchased a 60% stake in National Gas for £4.2bn in 2022.
An additional 20% was acquired last year as National Grid shifted its focus towards electricity and reduced its involvement with fossil fuels.
Macquarie said the acquisition terms for the remaining 20% stake in National Gas are reported to be on par with the financial terms of the consortium’s initial and subsequent investments, with adjustments, which were completed in January 2023 and March 2024, respectively.
The Financial Times, citing a source close to the deal, reported its value as being approximately £700m.
Since the consortium’s initial investment and the formation of National Gas in January 2023, the company has concentrated on delivering core services.
It has also been advancing projects such as Project Union and FutureGrid.
Macquarie Asset Management head of utilities for EMEA Will Price said: “We would like to thank National Grid for its partnership over the past two years, during which time we have continued to invest in National Gas and supported the company’s ongoing role in delivering a safe and reliable supply of gas to domestic, commercial and industrial energy users throughout Britain.
“This transaction underlines our commitment to National Gas and the critical role – which was emphasised again this month by both the Electricity System Operator and Ofgem – we believe its infrastructure will continue to play as the UK delivers its ambitious energy security and decarbonisation goals.”
The transaction is expected to be completed by the first quarter of 2025, pending the fulfilment of standard closing conditions and required regulatory approvals.
