27th Sep 2022 09:14
(Alliance News) - The UK's antitrust watchdog said it is probing whether National Grid PLC's sale of a shareholding in its gas transmission and gas metering business may lessen competition.
National Grid, which manages the UK's electricity infrastructure, in March agreed to sell a 60% interest in its gas transmission and metering business in the UK to a consortium of "long-term infrastructure investors" for GBP2.2 billion in cash.
The consortium includes Sydney-based asset manager Macquarie Asset Management, operated by Macquarie Group Ltd, and Victoria, Canada-based investment management firm British Columbia Investment Management Corp.
The Competition & Markets Authority is examining whether the deal well lead to a "substantial lessening of competition" in the UK. The watchdog has set a November 22 deadline for an initial decision.
Following the transaction, National Grid would own a 40% minority equity interest in its gas transmission and metering business through a new holding company called 'GasT TopCo'. Additionally, National Grid would receive roughly GBP2.0 billion from additional debt financing at completion.
The sale is part of National Grid's strategy to pivot towards electricity and follows last year's acquisition of power-distribution company Western Power Distribution for GBP7.8 billion.
National Grid shares were 0.4% lower at 984.60 pence each in London on Tuesday morning. Macquarie closed down 0.9% at AUD162.01 in Sydney.
By Tom Budszus; [email protected]
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