National Grid’s £7.8bn power deal gets green light from competition watchdog
The UK’s competition watchdog has today given the green light to National Grid’s whopping £7.8bn deal to buy Western Power Distribution (WPD).
Based on the information currently available, the Competition and Markets Authority (CMA) said it had decided not to refer the merger to a phase 2 investigation.
Back in March National Grid announced that it would acquire the UK’s largest power distribution business as part of a push away from gas.
As a result of the purchase, electricity assets will make up around 70 per cent of its portfolio, compared to 60 per cent before the deals, according to National Grid.
The FTSE 100 firm has also said that it will begin the sale of its gas assets next year as it seeks to double down on electricity distribution.
The CMA opened an investigation into the deal in June, but has now waved it through.
In a statement this morning, the firm said: “National Grid is pleased to note the announcement from the Competition and Markets Authority this morning clearing the acquisition by National Grid of PPL WPD Investments Limited, the holding company of Western Power Distribution.
“[The firm] will be hosting a Capital Markets Day for investors and analysts on 18 November where it will share its plans for WPD alongside the wider group.”
WPD’s four distribution network operators deliver electricity to about 7.9m customers and employ more than 6,500 staff.
National Grid has said it will keep the WPD headquarters in Bristol.