Macquarie Asset Management and British Columbia Investment Management Corporation (the Consortium) have reached an agreement to acquire a 60 per cent stake in National Grid's gas transmission and metering business. The terms of the transaction imply an enterprise value for the business of approximately £9.6 billion1.
National Grid owns and operates the UK's regulated national gas transmission system and an independent gas metering business. The 7,660-kilometre transmission system plays a critical role in the UK energy landscape, reliably transporting the gas needed to heat homes and power industry and electricity generation.
The Consortium will partner with National Grid to ensure the national gas transmission system and metering business remain secure, safe, and reliable while enabling the UK to accelerate its transition away from fossil fuels, at least cost to consumers. The Consortium invests on behalf of long-term institutional investors including pension and insurance funds, and intends to remain invested in the business over multiple regulatory periods, having acquired its stake under existing RIIO-2 regulatory obligations.
