PPL Corp. has entered into definitive agreements to sell its U.K. utility business, Western Power Distribution (WPD), to National Grid for £7.8 billion (€9.1 billion/$10.9 billion) and, in a separate transaction, to acquire National Grid’s Rhode Island utility business, The Narragansett Electric Co., for $3.8 billion. The strategic repositioning will transform PPL into a high-growth, purely U.S.-focused energy company with a strong balance sheet.
“The strategic transactions we are announcing today immediately unlock value for shareowners and achieve the objectives we set out in launching the process to sell our U.K. utility business,” said Vincent Sorgi, PPL president and CEO. “They will refocus our business mix squarely on strong, rate-regulated U.S. utilities; strengthen our credit metrics; enhance long-term earnings growth and predictability; and provide us with greater financial flexibility to invest in sustainable energy solutions for those we serve.”