Transactions - DECEMBER 8, 2016

Allianz, Hermes consortium invests £3.6b in U.K. gas grid

by Andrea Waitrovich

CIC Capital, Macquarie Infrastructure and Real Assets, and Allianz Capital Partners are among the investors in a £3.6 billion ($4.5 billion) U.K. energy consortium.

The Quad Gas Group, which also includes Hermes Investment Management, the Qatar Investment Authority, Amber Infrastructure’s International Public Partnership and Dalmore Capital, is jointly taking a 61 percent stake in four National Grid gas-distribution networks in the United Kingdom. The vendor, National Grid Plc, will retain a 39 percent stake in National Grid Gas Distribution.

The transaction is expected to complete during first quarter 2017 following regulatory approval.

Allianz has been active in the European energy gas energy sector. Earlier this year, Allianz with its partner Snam acquired a 49 percent stake in Gas Connect Austria from Austria's OMV in September 2016.

And Macquarie is reported to be in talks with Shell to acquire a stake in an Irish gas field on behalf of an Australian infrastructure fund. Macquarie is understood to have approached Shell regarding its 45 percent stake in Corrib, valuing it at around £1 billion ($1.3 billion).

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