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National Grid has said all hurdles to the sale of a majority stake in its gas transmission business have been cleared.
It means the £4.2 billion deal to sell a 60% stake in the business to Macquarie and British Columbia Investment Management Corporation is now expected to take place around 31 January.
The deal was first announced in March, when the consortium agreed to pay National Grid £2.2 billion on completion, with a further £2 billion in debt financing. This valued the business at £9.6 billion.
The agreement includes an option to sell the remaining 40% of the business still held by National Grid to the consortium.
It is understood that post-transaction the business will be re-branded.
National Grid put the gas business up for sale in March 2021 as part of its “strategic pivot” towards electricity with the acquisition of Western Power Distribution. The latest deal means the proportion of the company’s assets in electricity has grown from c60% to c70%.
The gas transmission network comprises approximately 7,660 kilometres pipes and 23 compressor stations. The metering business, which is also included in the sale, owns 8.4 million domestic and commercial meters.
In September, the Competition & Markets Authority launched an investigation into the deal. However, at the end of last month the watchdog ruled that the transaction could go ahead.
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