National Grid has today announced the acquisition of Britain’s largest electricity distribution business, Western Power Distribution (WPD), for £7.8 billion.
The acquisition from PPL Corporation is expected to allow the group to make a ‘strategic’ portfolio repositioning.
The company also said it expected to launch the sale process for National Grid Gas (NGG) in the second half of this year.
National Grid has unveiled plans to sell its US Rhode Island utility business to PPL for £2.7 billion.
John Pettigrew, Chief Executive of National Grid, said: “These transactions will be transformational for our UK portfolio. The acquisition of WPD is a one-off opportunity to acquire a significant
scale position in UK electricity distribution.
“As we move our portfolio to higher growth assets, we have taken the decision to sell a majority stake in NGG.
“Given the strategic nature of its business coupled with its central position in a transition towards a hydrogen economy, it will continue to play a vital role in the UK’s energy system.”