The UK power and gas transmission network operator National Grid has signed a definitive agreement with PPL Corporation to acquire PPL's UK utility business - Western Power Distribution (WPD) - for £7.8bn (€9.1bn). Western Power Distribution is the company responsible for electricity distribution in the Midlands, South West England and Wales (United Kingdom) to over 7.9 million customers. In addition, National Grid has agreed to sell the Narragansett Electric Company (NECO), which serves about 780,000 electric and gas customers in Rhode Island (United States), to PPL Corporation for US$3.8bn (€3.2bn).
Moreover, National Grid has also initiated a sale process for a majority stake in its UK gas transmission and metering business, which would reposition the group's assets to focus on electricity (from 60% to 70% of its assets focused on electricity). However, the group will continue to operate its US gas and electricity distribution businesses.
The transactions, which are expected to close in 2021, require customary approvals in the UK and the US, as well as National Grid share owner approval for the acquisition of WPD.