A French energy giant is buying London’s power network for £10.5 billion
French utility ENGIE has agreed to acquire UK Power Networks (UKPN), the company responsible for delivering electricity to millions of homes and businesses across London and southeast England, in a deal valued at £10.5 billion in equity terms.
The transaction, announced on Wednesday (25 February), will see ENGIE purchase 100% of UKPN from its current owners – Hong Kong-listed companies under the CK Group, associated with billionaire Li Ka-shing and his family.
The enterprise value of the deal stands at £15.8 billion, reflecting a multiple of approximately 1.5 times UKPN’s estimated regulated asset value (RAV) by the end of March 2026, and around 10 times its projected 2027 EBITDA, including contributions from unregulated assets.
UKPN is widely regarded as the UK’s top-performing electricity distribution network operator. It serves about 8.5 million customers across London, the South East, and East of England, delivering 71 terawatt-hours of electricity annually through a vast network of roughly 192,000 kilometers, three-quarters of which is underground. The company operates under three regulated licenses (London Power, South Eastern Power, and Eastern Power) and employs around 6,500 people.
Regulators have consistently ranked UKPN number one among UK distribution network operators (DNOs) for operational performance from 2015 to 2023, and it boasts some of the highest customer satisfaction scores in the sector. Its regulated asset value stood at £9.2 billion as of March 2025 and is projected to reach £10.5 billion by March 2028 under the current price control period.
“This acquisition marks a decisive step in strengthening ENGIE’s position as the best energy transition utility,” said Catherine MacGregor, ENGIE’s CEO, in a statement.
“It is fully aligned with our ambition to become a key player in regulated electricity network infrastructures, which are essential for energy security, demand electrification and greater system flexibility. This transaction will both enhance the Group’s growth trajectory and reduce our risk profile, providing more visibility on future earnings.”
