French energy giant ENGIE has finalized a transformative agreement to acquire 100% of UK Power Networks, one of Britain’s largest and highest-performing electricity distribution operators, in a deal valued at approximately £15.8 billion enterprise value, equivalent to around $21 billion including debt considerations. The transaction, signed on February 25, 2026, represents a significant step in ENGIE’s strategy to strengthen its position in regulated electricity networks and accelerate its role in the global energy transition.
Under the terms, ENGIE will pay an equity value of £10.5 billion (roughly $14.2 billion) to acquire the business from Hong Kong’s CK Infrastructure Holdings, part of the Li Ka-shing group. The acquisition covers UK Power Networks’ operations across three key licenses serving London, the South East, and the East of England. The company delivers around 71 terawatt-hours of electricity annually to more than 8.5 million customers, making it a critical player in the UK’s power infrastructure.
This move positions the UK as ENGIE’s second-largest market after France, substantially expanding its footprint in a country with ambitious net-zero targets by 2050. UK Power Networks has earned a reputation as the UK’s best-in-class distributor, consistently ranking at the top for operational performance, reliability, and customer service among the country’s distribution network operators. ENGIE executives highlighted the asset’s strong regulated revenue profile, stable cash flows, and alignment with growing electricity demand driven by electrification of transport, heating, and industry.
The deal values the regulated activities at about 1.5 times the estimated Regulated Asset Value as of end-March 2026, with an overall 2027 EBITDA multiple of around 10 times, including contributions from unregulated assets. ENGIE plans to finance the purchase through a combination of debt and equity, having already completed a €3 billion share capital increase in early March 2026 to support the transaction. Analysts view the valuation as attractive, offering predictable returns in a sector increasingly favored for its stability amid volatile energy markets.
Completion of the acquisition is targeted for mid-2026, subject to customary regulatory approvals from UK authorities and clearances from the sellers’ shareholders. Once finalized, ENGIE will fully consolidate UK Power Networks into its accounts, expecting the deal to be earnings-accretive from the first full year of ownership. The French utility has committed to maintaining high standards of service while investing in grid modernization to support the UK’s decarbonization goals and rising power needs.
For the UK energy sector, the transaction signals continued foreign investment in critical national infrastructure at a time when electricity networks face unprecedented pressure to expand capacity for renewables integration and electric vehicle adoption. ENGIE’s expertise in renewable energy development and energy transition solutions could bring additional innovation to UKPN’s operations, potentially accelerating smart grid technologies and resilience upgrades.
This landmark deal comes as ENGIE refocuses its portfolio toward regulated and renewable assets, reducing exposure to more volatile commodity businesses. It follows a period of strategic portfolio optimization, including asset disposals totaling around €4 billion to help fund growth opportunities like this one. Industry observers see the acquisition as a vote of confidence in the long-term value of UK electricity distribution networks amid the country’s clean energy push.
As the transaction progresses toward closing, ENGIE and UK Power Networks teams are preparing for a smooth integration that preserves operational excellence while aligning with broader group objectives. Customers can expect continuity of service, with potential benefits from ENGIE’s global resources and commitment to sustainable infrastructure.
The ENGIE-UK Power Networks combination strengthens Europe’s energy landscape by linking French energy transition leadership with Britain’s high-performing distribution network. It underscores the growing importance of robust electricity grids in achieving climate targets and supporting economic growth in an electrifying world. With mid-2026 completion on the horizon, this major deal is set to reshape ENGIE’s international presence and contribute meaningfully to the UK’s energy future.
