National Grid has unveiled plans to acquire Western Power Distribution, the UK’s largest electricity distribution business, from the US power group PPL Corporation for £7.8 billion.
As part of the deal National Grid will sell part of its US business — Narragansett Electric Company — to PPL for $3.8 billion.
Alongside the deal National Grid said it planned to sell “a majority stake” in its UK gas transmission business later this year as it repositions its UK portfolio towards electricity.
“These transactions will strengthen National Grid’s long-term growth outlook by ensuring a significant scale position in electricity distribution through the acquisition of WPD, the UK’s largest electricity distribution business. Electricity distribution is expected to see a high level of asset growth as a result of the ongoing energy transition,” according to the statement issued this morning.