Macquarie plans to take full ownership of National Grid’s gas unit after increasing stake
An investor-consortium led by Australia’s Macquarie Asset Management has upped its stake in the National Grid’s gas transmission business and plans to take full ownership “in due course”.
Macquarie, along with British Columbia Investment Management Corporation, snapped up an additional 20 per cent in the gas business, the company said today.
The investment takes the consortium’s total ownership in the National Grid’s gas transmission business to 80 per cent.
Macquarie, the world’s largest infrastructure investor, said it is on equivalent financial terms to the original 60 per cent acquisition, which was completed in January 2023.
“This additional investment underlines our commitment to National Gas and the critical role it plays in the UK’s energy system,” Martin Bradley, European head of infrastructure for Macquarie Asset Management, said in a statement.
“We are pleased to continue our strong relationship with National Grid, and aspire to acquire the remaining interest in due course,” he added.
Reacting to the news, trade union GMB said that Macquarie’s “stranglehold” on the business “should send alarm bells ringing”.
“Leaving the nation’s gas assets in the hands of Australian-owned private equity is disastrous for energy security, consumers or employees,” Gary Carter, GMB national officer, said in a statement.
“Macquarie left Thames Water with massive debts that brought it to the edge of collapse. Macquarie is the owner of failing Southern Water, which has repeatedly been fined for dumping sewage in rivers and seas in the South East,” Carter added.
The UK government launched a review under the National Security and Investment Act of the consortium’s 60 per cent purchase of the gas business in August last year.
A spokesperson for the National Grid confirmed that the deal was cleared by the government in January, and said that the further 20 per cent would also be subject to clearance.
“As we don’t expect the composition of the consortium to change and [National Security and Investment] approval for the consortium was secured for the 60 per cent stake sale in January 2023, we do not foresee any material risks to the completion of the transaction,” the spokesperson said.