(Alliance News) - The UK competition regulator has stepped in to serve an initial enforcement order over National Grid PLC's GBP7.8 billion acquisition of Western Power Distribution.
The UK Competition & Markets Authority said the order was served on Wednesday.
Initial enforcement orders are issued during the CMA's phase 1 assessment of a merger. The order is "to prevent action which may prejudice any reference to phase 2 or impede any remedial action taken or required by the CMA". The initial enforcement order prevents integration of the two businesses.
The deal for the UK's largest electricity distribution business from US energy firm PPL was agreed in March. National Grid will buy PPL WPD Investments Ltd, the holding company of Western Power Distribution, from PPL WPD Ltd, a subsidiary of US energy giant PPL Corp.
At the same time, National Grid, which manages the UK's power infrastructure, also announced plans to sell the majority stake in its gas grid business, as it increases its focus on electricity.
The WPD deal will be funded by fully committed bridge facilities and is expected to occur within the next four months. Completion of the Narragansett Electric sale is expected to occur before the end of the first quarter of 2022.
Separately, National Grid said it has hired Ian Livingston as a non-executive director. Livingston is the former chief executive of BT Group PLC and also minister of state for Trade & Investment in the UK government. Currently, he is a member of the House of Lords and chair of Dixon Carphone PLC.
National Grid shares were up 0.7% at 919.40 pence early Thursday.
By Paul McGowan; paulmcgowan@alliancenews.com
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