French utility Engie has agreed to purchase UK Power Networks, the United Kingdom's largest electricity distribution company, from Hong Kong's CK Infrastructure Holdings in a £10.5 billion deal. The acquisition represents one of the largest infrastructure transactions in the UK this year and marks a significant expansion of Engie's presence in the British energy market.

UK Power Networks distributes electricity to approximately 8.3 million customers across London, the South East, and East of England, managing a network of over 116,000 kilometers of cables and 29,000 substations. The company has been owned by CK Infrastructure since 2011, when it acquired the business for £5.4 billion. The sale price represents a substantial premium on the original acquisition cost, reflecting both the growth of the UK's energy infrastructure sector and the strategic value of the distribution network.

This deal underscores the ongoing consolidation in the European energy sector as companies seek to strengthen their positions in key markets. For Engie, the acquisition provides a major foothold in the UK's regulated electricity distribution business, complementing its existing portfolio of energy assets. The transaction is expected to close in the second half of 2024, subject to regulatory approvals.