Gary Carter of the GMB traded union has called on UK ministers to keep a close eye on any move from Australian banking giant Macquarie to take full control of National Grid PLC (LSE:NG.).
Macquarie Asset Management and British Columbia Investment Management Corporation joined forces to buy 60% of National Grid’s gas transmission and meter business earlier this year, but The Guardian has reported of a call option giving the consortium first dibs on the remaining 40%.
The gas transmission business is a crucial part of UK infrastructure managing over 4,000 miles of pipelines across the UK.
"Significant investment will be required to achieve net-zero emissions and ensure the UK's energy supply for future generations. Can Macquarie truly be trusted with complete ownership of the nation's gas transmission business?” Carter told The Guardian on Sunday.
“Macquarie's track record shows a focus on maximising profits and stripping assets, often at the expense of investment, employees, pay, and pensions. The government must not remain passive when energy security is at stake."
Macquarie’s ownership of British utility companies Thames Water and Southern Water has been the subject of controversy for significant debt accumulation and sewage discharge.
Macquarie left Thames Water with a £10bn debt burden after disposing of its stake to private investors throughout the 2010’s.
In a recent interview with The Guardian, National Grid's CEO, John Pettigrew, declined to comment on whether the consortium would exercise its option to acquire the remaining equity.
When asked about Macquarie's reputation following the initial 60% acquisition, National Grid chief John Pettigrew told The Guardian: "The government has a process in place to ensure that potential buyers are suitable for any acquisition. We followed that process.
“Macquarie has previously acquired gas assets and, as far as I can see, has always been a reputable operator of those assets. There is a government process in place to determine the suitability of buyers, which we followed."
The 2021 National Security and Investment Act gives the government the power to intervene in foreign acquisitions of British businesses.
National Grid is a FTSE 100 constituent valued at over £54bn.