French utility company Engie is to acquire 100 per cent of UK Power Networks (UKPN), the UK electricity distributor in a £10.5bn deal.

The acquisition will make the UK the second-largest country of activity for Engie, and responsibility for 71TWh of electricity delivered each year to 8.5 million customers in the UK under three distribution licenses covering London, the South East and East of England.

Ther move will reinforce ENGIE’s position across the electricity value chain, complementing its leading roles in upstream renewables and flexible electricity and storage, and in downstream energy management and customer supply.

Completion of the transaction is expected in mid-2026, subject to certain regulatory approvals, which are customary for this type of transaction. The transaction is also conditional on approval by the independent shareholders of the Hong-Kong listed parent companies of the sellers.

Catherine MacGregor, Engie CEO, said: “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 UK, a key country with a stable regulatory framework and clear decarbonation targets. We are proud to join forces with UKPN’s talented teams as we embark on this new chapter together.”

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