London, 26 February 2026 – French energy giant Engie is set to buy the United Kingdom’s largest electricity distribution business, UK Power Networks, in a landmark £10.5 billion (about US$14.2 billion) transaction from Hong Kong’s CK Infrastructure Holdings and affiliated units of the legendary business empire founded by Hong Kong billionaire Li Ka‑shing.
The deal, expected to be finalised by mid-2026, marks one of the biggest recent infrastructure acquisitions in the UK’s power sector and highlights a strategic shift by both sides, with Engie bolstering its regulated electricity network footprint and CK Group recycling capital from mature assets.
Strategic Shift in Energy Infrastructure
Under the agreement, Engie will acquire the power distribution network that serves roughly 8.5 million customers across London, southeast and eastern England, operating some 192,000 km of electricity lines. The acquisition will make the UK Engie’s second-largest market by earnings after France, according to company forecasts, and supports its long-term positioning in regulated network assets with stable revenue profiles.
Engie plans to finance the transaction through a combination of debt instruments, asset sales and new equity issuance, ensuring the deal remains aligned with its investment-grade rating and dividend policy while expanding its network operations.
The deal comes as European utilities increasingly pivot toward electricity distribution in anticipation of rising demand from electrification trends such as electric vehicles, heat pumps and data centre growth, all underpinned by ambitious decarbonisation programmes across major economies.
CK Group’s Asset Recycling Strategy
The UK Power Networks sale underscores a broader reshaping of Hong Kong-born conglomerate CK Hutchison’s portfolio under the leadership of the next generation, including Li Ka-shing’s son Victor Li. Having owned the UK power network since 2010, CK Group’s disposal follows a phase of divestments across infrastructure and global assets as it recalibrates its exposure amid geopolitical and market shifts.
Analysts note the sale allows CK-linked companies to unlock significant capital gains, with CK Infrastructure planning to realise an effective gain of about HK$14.5 billion on its portion of the deal, which could be redeployed for new investments or used to strengthen the group’s balance sheet.
Implications for the UK Market
The acquisition marks the largest UK energy infrastructure deal in nearly a decade and signals continuing strong international interest in regulated utilities. For Engie, it accelerates its strategic shift away from more volatile segments of the energy industry toward predictable, long-duration assets that align with the UK’s electrification and net-zero commitments.
For the UK power sector, the transaction, coming amid broader upgrade investments to support electrification and grid resilience, could also accelerate infrastructure modernisation and reinforce confidence among investors eyeing regulated utility opportunities.
