Macquarie Asset Management makes game-changing move with full takeover of National Gas

In a landmark transaction, Macquarie Asset Management has secured full ownership of National Gas, concluding a major acquisition of the remaining 20% equity interest held by National Grid. This move positions Macquarie Asset Management as the sole owner of National Gas, which operates the United Kingdom’s expansive 7,660-kilometre national gas transmission system. This acquisition underscores Macquarie Asset Management’s commitment to investing in critical infrastructure and supporting the UK’s energy transition.

Full Control of National Gas

National Gas, responsible for transporting energy across the UK and maintaining over six million gas meters, has been at the centre of a significant investment strategy by Macquarie Asset Management. The final purchase of National Grid’s 20% stake was agreed upon on equivalent financial terms to earlier investments made by the consortium in January 2023 and March 2024. This strategic acquisition will see Macquarie Asset Management and its partners fully controlling National Gas.

Will Price, Head of Utilities for Macquarie Asset Management in Europe, the Middle East, and Africa, expressed gratitude towards National Grid for their collaboration over the past two years. Price highlighted that this acquisition reaffirms their commitment to National Gas and its role in delivering a reliable gas supply across the UK. He noted that both the Electricity System Operator and Ofgem have emphasized the infrastructure’s crucial role in achieving the UK’s ambitious energy security and decarbonisation objectives.

Ongoing Investments and Future Goals

Since the consortium’s initial investment in January 2023, National Gas has concentrated on its core services while also advancing initiatives like Project Union and FutureGrid. These projects are pivotal for the UK’s transition to net zero, aiming to establish a hydrogen network that supports sustainable energy solutions. The completion of this acquisition, anticipated by the first quarter of 2025, is contingent upon meeting customary closing conditions and obtaining regulatory approvals.

Strategic Implications of the Deal

The acquisition of National Gas is a strategic move that not only consolidates Macquarie Asset Management’s position in the energy sector but also aligns with the broader goal of energy transition and sustainability. The full ownership of National Gas allows for greater flexibility in investment decisions and strategic planning, particularly in supporting future-focused projects such as hydrogen infrastructure.