National Grid takeover would not be subject to new rules on foreign buyers of critical infrastructure
An acquisition of National Grid's [LON:NG], gas distribution network by a Chinese company would not be subject to new rules on foreign acquisitions of “critical infrastructure,” The Mail on Sunday reported.
The newspaper quoted a government source who said the UK secretary of state will consider the existing law when a deal is transacted. The source added that a government review will look at whether National Grid’s gas network should be considered critical infrastructure.
National Grid began a sale process for a majority stake in its UK gas distribution network earlier this year, as previously reported.
The government this month indicated that it will introduce new laws to prevent the sale of key infrastructure to foreign companies, the item said. The new legislation is to be part of a review of the Enterprise Act of 2002.
The GMB Union this weekend urged National Grid to suspend the sale pending completion of the review, the article said.
The deadline for offers for the gas distribution stake was Friday, 23 September, the report said. It is thought that Chinese government-backed China Resources Gas [HJ:1193] submitted an offer for the stake, the article added.
As previously reported, the Hong Kong-based businessman Li Ka-Shing is believed to have been forming a bid consortium headed by his Cheung Kong infrastructure investment vehicle.
Canada Pension Plan Investment Board is thought to have teamed up with the sovereign wealth funds of Abu Dhabi and Kuwait to make an offer for the gas networks stake, the item said.
It is thought that the Australian bank Macquarie, backed by China Investment Corporation, has has also tabled an offer for the stake, the newspaper said.
Fosun, a privately-owned Chinese group, was also working on an offer for the gas networks stake last week, according to the report.