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The UK's antitrust watchdog said it is probing whether National Grid PLC's sale of a shareholding in its gas transmission and gas metering business may lessen competition.
National Grid, which manages the UK's electricity infrastructure, in March agreed to sell a 60% interest in its gas transmission and metering business in the UK to a consortium of ‘long-term infrastructure investors’ for £2.2 billion in cash.
The consortium includes Sydney-based asset manager Macquarie Asset Management, operated by Macquarie Group Ltd, and Victoria, Canada-based investment management firm British Columbia Investment Management Corp.
The Competition & Markets Authority is examining whether the deal well lead to a ‘substantial lessening of competition’ in the UK. The watchdog has set a November 22 deadline for an initial decision.
Following the transaction, National Grid would own a 40% minority equity interest in its gas transmission and metering business through a new holding company called 'GasT TopCo'. Additionally, National Grid would receive roughly £2.0 billion from additional debt financing at completion.
The sale is part of National Grid's strategy to pivot towards electricity and follows last year's acquisition of power-distribution company Western Power Distribution for £7.8 billion.
National Grid shares were 0.4% lower at 984.60 pence each in London on Tuesday morning. Macquarie closed down 0.9% at A$162.01 in Sydney.
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