UK ministers urged to intervene if Australian bank takes 100% of gas business
Ministers have been urged to intervene if Australian banking powerhouse Macquarie pushes the button on a mooted £3bn deal to take full control of a vital part of the UK’s gas grid.
A consortium comprised of Macquarie Asset Management and British Columbia Investment Management Corporation completed the acquisition of 60% of the equity in National Grid’s gas transmission and meter business in January, in a deal which valued the business at £7.5bn.
The Guardian understands a clause in that deal allows the consortium first refusal to snap up the remaining 40% from this summer.
The transmission business operates more than 4,000 miles of gas pipes in the UK.
If the consortium exercises the call option, it may prompt concerns over the future of a crucial piece of UK infrastructure as officials attempt to rebalance the nation’s energy system towards low-carbon technologies.
Macquarie owns a string of UK infrastructure assets including the gas network Cadent, Glasgow and Southampton airports, and several windfarm projects along the east and north-west coasts of England.
However, it has a chequered reputation in the UK over its ownership of first Thames Water, where it faced political scrutiny for extracting billions in dividends while its debt soared, and now Southern Water, the utility company criticised for repeatedly discharging sewage into the sea.
Gary Carter, GMB national officer, said: “Massive investment is going to be needed to reach net zero and secure the UK’s energy supply for future generations.
“Can Macquarie really be trusted with whole ownership of owning the nation’s gas transmission business?
“Macquarie’s reputation is one of maximising profits and stripping assets, often at the expense of investment as well as employees
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