The Engie logo on the facade of an office building in Lindau, Bavaria, Germany, on February 22, 2026. (Photo by Michael Nguyen/NurPhoto via Getty Images)
Shares in French utility Engie hit their highest since September 2009 on Thursday, after the company announced it would buy UK Power Networks from Hong Kong-listed CK Infrastructure Holdings for 10.5 billion pounds ($14.21 billion), its largest acquisition to date.
Shares were up 7% at 29.49 euros ($34.79) at 0838 GMT, heading for their biggest single-day rise since March 2022.
The acquisition is transformational for Engie, which was the only major utility without an electricity network in Europe, as countries push their transport and industrial sectors to electrify in an attempt to build out renewable power and use less oil and gas.
The price paid by Engie implies a multiple of 1.5 times the regulated asset value of UKPN. This is in line with other transactions in the sector, but is lower than the reported level KKR and Macquarie offered in 2022.
“In our view, this is a strategic and positive step, particularly as the valuation appears reasonable by comparison, especially prior to the sector’s rally over the past year,” Alpha Value analyst Pierre-Alexandre Ramondenc said in a note.
Jefferies analysts called the deal very positive for diversifying the business and reducing Engie’s exposure to fluctuating natural gas prices.
Engie said Bank of America, BNP Paribas and Rothschild advised the company on the deal.