Chinese to bid for National Grid gas pipeline
A consortium of Chinese investors is to bid at auction for British utility National Grid's gas pipeline network.
The network, valued at an estimated 11 billion pounds ($14.3 billion; 12.8 billion euros), serves 10.9 million homes and businesses nationwide.
According to reports, the consortium involves Fosun and China Gas, and will compete with rival bidders including groups led by Canada Pension Plan Investment Board and Australian bank Macquarie.
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Electricity output and usage data are displayed on a computer screen at the National Grid control centre in Wokingham, UK. Chinese firms are said to be among potential bidders to acquire a stake in National Grid's gas pipeline network. Getty Images |
Bids are to be submitted by the end of the month and must meet a minimum requirement of comprising 51 percent of the new company. National Grid will remain as a minority shareholder. A spokesman for National Grid declined to identify the Chinese investors when contacted by China Daily, while the two Chinese were yet to comment on the issue.
National Grid announced plans in November to sell a majority stake, with the sale to be handled by Barclays, Morgan Stanley and Robey Warshaw.
Reports of Chinese interest come just a week after British Prime Minister Theresa May disclosed plans to tighten regulation on foreign involvement in British infrastructure development.
This month, May finally gave approval for Hinkley Point C, the 18 billion pound nuclear power station to be built in southwest England by French energy company EDF with an investment of 6 billion pounds from China General Nuclear Corp.
Greg Clark, secretary of state for business, energy and industrial strategy, said after the decision was announced that, "Having thoroughly reviewed the proposal for Hinkley Point C, we will introduce a series of measures to enhance security and will ensure Hinkley cannot change hands without the government's agreement."
The measures will also apply to future nuclear projects, with other large infrastructure projects, such as the National Grid sale, facing increased scrutiny.
Sean Kemp, National Grid's UK head of media relations, says, "We will not speculate on the identity of potential bidders. The new owner will operate under the relevant requirements."
angus@mail.chinadailyuk.com
