The Competition and Markets Authority (CMA) has approved National Grid’s £7.8bn offer to purchase Western Power Distribution (WPD), which covers the South West, South Wales and the Midlands.
National Grid has made the buyout of WPD as part of its overall strategy to move towards greener energy and has said it was “pleased” the regulator had given the deal the green light.
National Grid will also look at selling off National Grid Gas, the UK’s national gas transmission system, later this year, with the two moves increasing the proportion of electricity assets in the group’s portfolio to approx 70%.
National Grid believes its purchase of WPD will strengthen its long-term business prospects, as it anticipates a high level of electricity assets growth as a result of ongoing energy transition, with gas boilers being phased out and a large increase in EV usage.
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