(Alliance News) - National Grid PLC's GBP7.8 billion acquisition of Britain's largest electricity distribution business has been cleared by the UK competition watchdog.
The UK Competition & Markets Authority has decided not to refer the purchase of PPL WPD Investments - the holding company of Western Power Distribution, the UK's largest electricity distribution business - to a phase two investigation.
The GBP7.8 billion deal for Western Power from US energy firm PPL Corp was agreed in March.
National Grid said it was "pleased" with the regulators decision. The CMA had launched a merger inquiry into the WPD acquisition in June, though the deal had already gone through.
National Grid, which manages the UK's power infrastructure, said the acquisition was part of a shift towards electricity and greener energy.
It came amid a flurry of deals to pivot its portfolio, with National Grid also announcing the sale of its Rhode Island utility business - The Narragansett Electric Co - to PPL for USD3.8 billion. And National Grid revealed at the time it would launch a process later in the year to sell a majority stake in National Grid Gas.
Shares in National Grid were 0.9% higher in London on Wednesday morning at 949.90 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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