National Grid Transco sells gas distribution networks

2 June 2005

National Grid Transco has announced that it has completed the sale of four gas distribution networks in deal worth £5.8 billion.

The deal means that four major gas networks will be under new, independent management, opening up competition, which could lead to cheaper gas bills for consumers.

Wales & the West distribution network was sold for £1.2 billon to a consortium managed by the Macquarie European Infrastructure Fund.

A consortium comprising Scottish and Southern Energy, Borealis Infrastructure Management and Ontario Teacher's Pension Plan will now run the south of England and the Scotland distribution network, following a £3.2 billion sell-off.

The north of England distribution network has been purchased for £1.4 billion by a consortium led by Cheung Kong Infrastructure Holdings, in a joint venture with United Utilities.

"We are delighted to announce completion of our network sales," said chief executive Roger Unwin in a company statement.

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