French energy company ENGIE has agreed a £10.5billion takeover of UK Power Networks in one of the largest transactions in Britain’s energy sector in more than a decade.
The acquisition gives control of London’s electricity distribution network to a company in which the French state holds around 24 per cent, making it the anchor shareholder with significant voting rights.
The transaction values UK Power Networks at an enterprise value of £15.8billion and will make Britain ENGIE’s second-largest market globally.
ENGIE said the purchase would strengthen its position in regulated network infrastructure as it expands its renewable electricity and green gas operations.
UK Power Networks is Britain’s largest electricity distributor, delivering about 71 terawatt hours of electricity each year to 8.5 million homes and businesses across London, the South East and the East of England.
Its network extends across nearly 192,000 kilometres, much of which is underground.
The company supplies electricity to major transport hubs including Heathrow, Gatwick, Stansted and London City airports.
UK Power Networks has regularly ranked highest among Britain’s distribution network operators for performance and customer satisfaction.
Deal hands control of London’s electricity network to firm backed by French state
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It was named in an investigation by the National Energy System Operator into a fire that temporarily closed Heathrow, although it was later cleared of responsibility for the initial cause.
The business is being sold by companies controlled by Hong Kong billionaire Li Ka-shing amid broader scrutiny of overseas ownership of critical British infrastructure.
CK Infrastructure Holdings acquired UK Power Networks in 2010 for £5.5billion.
Sister company CK Power Assets holds a 40 per cent stake, with CK Infrastructure Holdings also holding 40 per cent and CK Asset owning the remaining 20 per cent.
French energy company ENGIE has agreed a £10.5billion takeover
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Mr Li has previously rejected accusations of political collaboration with the Chinese state, while his companies have declined to comment on such claims.
Recent reports have indicated Beijing officials have distanced themselves from the tycoon following pressure from the administration of US President Donald Trump that led to the sale of two ports in the Panama Canal.
The agreed purchase price reportedly followed a higher late-stage offer, with the buying consortium concluding that elevated UK inflation had increased the asset’s regulated value.
France already has a significant presence in Britain’s energy sector through EDF, which operates all five of the country’s nuclear power stations and generates around 12 per cent of total electricity.
The transaction values UK Power Networks at an enterprise value of £15.8billion
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EDF, which was fully renationalised by the French Government in 2023, confirmed in July 2025 that it had taken a 12.5 per cent stake in the Sizewell C project, committing up to £1.1billion.
Catherine MacGregor, chief executive of ENGIE, said: “This transaction will both enhance the Group’s growth trajectory and reduce our risk profile, providing more visibility on future earnings.”
Basil Scarsella, chief executive of UK Power Networks, said: “By joining ENGIE, we continue to be part of a global energy leader with the financial strength, industrial capabilities and long-term vision to support our next phase of development.”
The deal is expected to complete by mid-2026, subject to regulatory and shareholder approvals.