National grid will buy the UK’s largest electricity distribution company Western Power Distribution asset for an equity value of 7.8 billion pounds as it positions itself for a climate-driven transition from gas to electric power. Moreover, the company announced to sell Rhode Island utility the Narragansett Electric Company (NECO) to PPL for 2.7 billion pounds as a part of the deal. It also announced that National Grid would begin a process of selling off its gas business during second half of this year, to take advantage of the growing shift towards electrification and increased need for electricity capacity for the charging of electric vehicles. This deal will increase the proportion of National Grid’s electricity assets from 60% to 70%. Completion of the WPD purchase is expected to occur within the four months and completion of the NECO sale is expected to complete in the first quarter of 2022.The gas sale will be launched in the second half of this year and is expected to complete approximately a year later. This deal will significantly enhance National Grid’s central role in the delivery of the UK’s net zero targets Link to the news: https://otp.tools.investis.com/clients/uk/national_grid2/rns/regulatory-story.aspx?cid=374&newsid=1461911
National Grid announced to acquire the UK’s largest electricity distribution company , Western Power Distribution from a US based PPL for approximately 8 billion pounds.
by admin | 2021, March, 18