26th February 2026 – (London) France’s Engie has agreed to buy UK Power Networks from Hong Kong tycoon Victor Li’s CK Group for £10.5 billion, securing Britain’s largest electricity distribution operator as the utility pivots further into regulated infrastructure. The acquisition, slated to complete by mid‑2026, will make the UK Engie’s second‑largest earnings contributor after France.
UK Power Networks serves about 8.5 million customers across London and south‑east England. Engie plans to fund the purchase through a mix of roughly €5 billion in debt and hybrid securities, €4 billion of asset disposals and up to €3 billion of new equity via an accelerated bookbuild to safeguard its investment‑grade rating.
The deal aligns with Engie’s strategy to reduce exposure to volatile fossil fuel‑linked activities and deepen its stake in regulated grids and long‑term contracted renewables. Management said the transaction is expected to lift net recurring income, guiding for €4.6–€5.2 billion in 2026 — about €400 million above previous forecasts — and up to €5.8 billion by 2028. JP Morgan analysts called the purchase a quality asset at a reasonable price that enhances earnings both qualitatively and quantitatively.
Britain’s push to decarbonise and electrify is driving heavy grid investment, with rising demand from renewables, electric vehicles, heat pumps and energy‑hungry data centres. Regulated distribution networks earn inflation‑linked returns, making them attractive to long‑term investors. Sales of such assets are uncommon; National Grid’s £7.8 billion takeover of Western Power Distribution in 2021 was the UK’s largest utility deal in at least a decade.
CK Group has explored a sale of its UK distribution arm for several years, including talks in 2022 with a consortium led by Macquarie and KKR. According to company filings, UK Power Networks is owned 40% by CK Infrastructure Holdings, 40% by Power Assets Holdings and 20% by CK Asset Holdings.
Separately, Engie reported flat full‑year results, with net recurring income down 12% to €4.9 billion amid lower French hydropower output, softer power prices and the closure of three Belgian nuclear reactors. The board proposed a dividend of €1.35 per share, down from €1.48 a year earlier. CEO Catherine MacGregor said the acquisition “makes our ambition in electricity distribution networks a reality,” citing the UK’s clear decarbonisation pathway and substantial network investment needs.
