Macquarie to acquire remaining 20% stake in National Gas

Macquarie Asset Management, via its managed equity and funds, is exercising its option to acquire the remaining 20% equity interest in National Gas held by National Grid.

National Gas owns and operates the UK’s 7,660km national gas transmission system, safely and reliably transporting energy to power stations, major industries and homes. National Gas also owns and maintains over 6m domestic, industrial and commercial gas meters across the UK.

Following completion of this transaction, a consortium led by Macquarie Asset Management will own 100% of National Gas. The acquisition of National Grid’s remaining 20% interest in National Gas has been agreed on equivalent financial terms, following certain adjustments, to the consortium’s initial and follow-on investments in the company which were finalised in January 2023 and March 2024, respectively.

This latest acquisition of a stake in National Gas follows an earlier transaction in 2023.

Will Price, head of utilities for Macquarie Asset Management in EMEA, 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.”

Following the consortium’s initial investment and the creation of National Gas in January 2023, the company has remained focused on the delivery of its core services while progressing future-focused initiatives such as Project Union and FutureGrid. These initiatives aim to ensure the infrastructure operated by National Gas can be fully utilised in support of the UK’s transition to net zero through focused investment to develop a core hydrogen network.

The completion of this transaction is expected by Q1 2025, subject to the satisfaction of customary closing conditions and regulatory approvals.

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