Energy distributor National Grid PLC (LSE:NG.) has confirmed that the sale of 60% of its UK gas transmission and metering business for £4.2bn will be finalised by late January, having met the required regulatory conditions.
When it announced the deal with a consortium including Macquarie Asset Management and British Columbia Investment Management Corporation in March this year, National Grid suggested it was selling the gas company as part of its net-zero transition strategy.
“This transaction further enhances our role in delivering the UK's energy transition, pivots our portfolio towards electricity, whilst ensuring the security of the energy supply for the country,” said chief executive John Pettigrew previously.
While National Grid will still own 40% of the business, the remainder could be sold to the consortium between January and June next year.
Publishing results in late September, National Grid upped planned investments into clean energy as part of its ‘strategic pivot,’ after having enjoyed a 50% increase in operating profit from 2021.
It outlined £40bn worth of infrastructure investments between 2022 and 2026, with £29bn of this aimed directly at the decarbonisation of energy networks.
National Grid previously completed the sale of its Narragansett Electric Company to PPL Rhode Island Holdings in May for £3.1bn, while also acquiring Western Power Distribution beforehand as part of its goal to provide “clean, fair and affordable energy” in the future.