‘Vampire Kangaroo’ Macquaire buys another big chunk of Britain’s gas network

National Grid has sold another major chunk of Britain’s gas infrastructure network to Macquarie.

The agreement means a consortium run by the Australian infrastructure giant, once dubbed the ‘vampire kangaroo’, will own 80 per cent of National Gas, which looks after thousands of miles of pipes that supply homes.

It follows a previous deal in which Macquarie and British Columbia Investment bought 60 per cent of the gas infrastructure business for £4.2billion, with an option to take more shares in the FTSE 100 energy group.

National Grid will bank around £700million from the sale, which will go towards corporate purposes, including debt repayments. 

It told investors it has entered into a new agreement, which could result in a full takeover.

Debt threat: Australian infrastructure giant Macquarie now owns 80% of National Gas, which operates thousands of miles of pipes that bring supplies into UK homes

But the swoop will need regulatory approval, under national security laws.

National Grid, which owns the remaining 20 per cent of the business, has been focusing on a pivot towards electricity, where it sees higher growth, after its electricity distribution profits rose 39 per cent to £1.2billion in the year-end to March.

A major part of this shift will be abandoning gas for cooking and heating homes and, looking towards heat pumps, to heat homes electrically.

Macquarie has faced increased scrutiny in recent months as Thames Water struggles with a debt pile that it grew while under its ownership between 2006 and 2017.

The Australian firm has its hands on swathes of key UK infrastructure – a majority stake in Southern Water and co-ownership of Cadent, Britain’s biggest gas distribution network operator.

Gary Carter, an official at the GMB union, said: ‘Macquarie’s stranglehold on gas transmission and distribution should send alarm bells ringing. Macquarie left Thames with massive debts that brought it to the edge of collapse.

‘Macquarie is the owner of failing Southern Water, which has repeatedly been fined for dumping sewage in rivers and seas in the South East.

‘It is also the owner of Cadent Gas, which makes massive profits – £950million last year – and paid £350million in dividends while looking to close employees’ pension scheme.’

John Pettigrew, chief executive of National Grid, said: ‘We’re pleased to reach the next milestone in this process, and we’ll continue to work closely with the consortium.’

Martin Bradley, European head of infrastructure for Macquarie Asset Management, said: ‘We are pleased to continue our strong relationship with National Grid and aspire to acquire the remaining interest in due course.’

National Grid shares jumped 2.6 per cent, or 26.5p, to 1040p.

This post first appeared on Dailymail.co.uk