Macquarie buys National Grid's remaining stake in National Gas

(Alliance News) - Macquarie Group Ltd has exercised its option to buy the remaining interest held by National Grid PLC in National Gas, the operator of the UK's gas transmission network.

The two companies on Friday said the purchase of the final 20% stake in National Gas was on "equivalent financial terms to the original transaction", which suggests the price was around GBP700 million.

Back in January 2023, National Grid agreed to sell a 60% equity sale in National Gas to a consortium led by Macquarie Asset Management Holdings Pty Ltd for GBP2.2 billion. In July of that year, it sold a further 20% stake for GBP700 million.

Macquarie had an option to buy the final 20%, and this needed to be exercised by July 31 this year. Macquarie and National Grid said the purchase announced on Friday will be completed by the first quarter of calendar 2025.

At the time of the original sale to Macquarie, National Grid said the disposal of National Gas was part of its strategy to pivot towards electricity and followed its 2021 acquisition of Western Power Distribution for GBP7.8 billion.

"We would like to thank National Grid for its partnership over the past two years, during which time we have continued to invest in National Gas and supported the company's ongoing role in delivering a safe and reliable supply of gas to domestic, commercial, and industrial energy users throughout Britain," said Will Price, head of Utilities for Macquarie Asset Management in Europe, Middle East and Africa.

National Gas operates a 7,660-kilometre network of gas pipes, delivering to power stations, industry and homes. It owns and maintains more than 6 million domestic, industrial and commercial gas meters across the UK.

National Grid shares were up 0.5% to 968.05 pence midday Friday in London. Macquarie shares closed up 1.5% to AUD204.67 in Sydney.

By Tom Waite, Alliance News editor

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