Engie Agrees $14 Billion Deal to Buy UK Power Networks in Major Energy Move

French energy group Engie has agreed to acquire UK Power Networks in a deal valuing the business at 10.5 billion pounds, equivalent to more than 14 billion dollars, marking one of the largest energy infrastructure transactions in Britain in recent years.

UK Power Networks operates electricity distribution networks serving London, the South East and the East of England. The company is responsible for delivering power to around eight million homes and businesses, managing critical grid infrastructure that connects renewable generation, businesses and households to the national electricity system.

The acquisition reflects Engie’s strategy to strengthen its position in regulated energy networks and expand its footprint in stable, long term infrastructure assets. Distribution networks typically generate predictable cash flows under regulatory frameworks, making them attractive to large utilities seeking resilience amid volatile wholesale energy markets.

Engie, headquartered in Paris, has been reshaping its portfolio over the past several years. The group has shifted focus towards renewable energy, energy networks and low carbon solutions, while reducing exposure to fossil fuel intensive assets. Buying UK Power Networks aligns with its ambition to build a more geographically diversified and infrastructure focused energy business.

The UK electricity distribution sector is tightly regulated by Ofgem, the national energy regulator, which sets revenue allowances and investment parameters for network operators. UK Power Networks has previously been recognised for operational performance and network reliability, factors likely to have influenced Engie’s interest.

Energy infrastructure has become increasingly valuable as Britain accelerates its transition to net zero emissions. Distribution networks play a crucial role in integrating offshore wind, solar power and electric vehicle charging systems into the grid. Significant investment is required to modernise systems, upgrade substations and support decentralised generation.

The deal is expected to undergo regulatory review before completion, including competition and national security assessments. Foreign acquisitions of critical infrastructure assets in the UK are subject to scrutiny under the National Security and Investment Act.

For Engie, the purchase provides exposure to a mature and stable regulatory environment while offering growth opportunities linked to electrification and decarbonisation trends. Analysts note that demand for electricity is forecast to rise over the coming decade as transport and heating systems increasingly shift away from fossil fuels.

The transaction also highlights continued international interest in UK infrastructure despite broader economic uncertainties. Energy networks remain viewed as strategic assets capable of delivering steady returns in an era of shifting energy policy and climate commitments.

If approved, the acquisition would significantly expand Engie’s network operations portfolio and reinforce its presence in one of Europe’s largest energy markets. Further details regarding financing structure and completion timelines are expected to be disclosed as the regulatory process progresses.