National Grid gas network attracts Chinese bid group including Fosun and China Gas - report

China Gas and Fosun are among giant Chinese companies said to be bidding for UK-based National Grid’s GBP 11bn (USD 14.3bn) gas operations, The Sunday Times reported. The Chinese groups are believed recently to have formed a consortium to bid against a group thought to include Macquarie, Allianz, Amber Infrastructure, Dalmore Capital and China Investment Corporation (CIC); and another including Canada Pension Plan Investment Board, Abu Dhabi and Kuwaiti sovereign wealth funds, Hermes and the Universities Superannuation Scheme.

The consortia compositions may still change, the unsourced report said, adding that CIC might opt to team up with Fosun.

Bid are scheduled to be received later in the month, the report noted. Barclays, Robey Warshaw and Morgan Stanley are managing the auction.

National Grid is creating a new standalone operation for its four gas-distribution pipelines and will offer a minimum 51% stake in the new entity to bidders, with the new owners assuming day-to-day control, the report said.