PARIS, February 26, 2026, 13:12 (CET) — Regular session
- Engie surged almost 8%, landing at 29.7 euros—a level not seen since February 2009.
- Utility is set to acquire UK Power Networks for £10.5 billion, marking its largest deal to date.
- Investors are zeroed in on funding and dividends, with a shareholder vote slated for April 29.
Shares of Engie (ENGI.PA) surged to levels last seen 17 years ago on Thursday, after the French utility announced a 10.5 billion pound ($14.2 billion) deal to acquire UK Power Networks from CK Infrastructure Holdings—marking its biggest buy ever. By 12:19 CET, the stock had climbed almost 8%, trading at 29.7 euros. Jefferies called the acquisition “transformative”. According to someone with knowledge of the transaction, the purchase price values UK Power Networks at roughly 1.5 times its regulated asset value, a key metric for UK regulators setting allowed returns. 1
This surge is grabbing attention, as investors have spent years steering European utilities toward more predictable, regulated businesses—no surprise after the chaos in gas and power prices. UK electricity distributors are halfway into a 22-billion-pound regulated investment stretch, set to run through 2028, with most of the outlay funneled back via customer bills. Engie’s latest step lands not long after Iberdrola made its own UK grid play, snapping up Electricity North West in its 2024 deal. 2
Engie says UK Power Networks, which supplies 8.5 million customers in London and across the south and east of England, should help steady the group’s cash flow. To pay for the deal, Engie is looking at around 5 billion euros in debt and hybrid issuance. There’s also a plan to raise about 4 billion euros from asset sales by 2028, and up to 3 billion euros could come through an accelerated bookbuild — a quick share sale aimed at institutional investors — to keep its investment-grade credit rating intact. CEO Catherine MacGregor described the move as “a decisive step” expected to “provide more visibility on future earnings.” UK Power Networks CEO Basil Scarsella, for his part, said Engie’s backing would support a “period of significant investment” in the network. 3
Engie dropped its 2025 results and fresh targets together. Earnings for the year slipped 1%, falling short of analyst forecasts. Even with colder winter weather lifting gas sales, low rainfall dragged on hydropower, weighing overall results. For 2026, Engie now sees net recurring income attributable to the group between 4.6 billion and 5.2 billion euros, its updated baseline profit outlook. The company also bumped its 2026 EBIT target (excluding nuclear) to a range of 8.7 billion to 9.7 billion euros. 4
Engie signaled a simultaneous shakeup at the top. The board plans to nominate Jean-Pierre Clamadieu to stay on as chairman through the end of the 2027 annual meeting—he’ll hit the age cap then. Michel Giannuzzi is set to step in as vice-chairman following the next general meeting, with the board lining him up to assume the chairman’s seat in 2027. 5
The spotlight is now on execution. Traders want specifics—how fast can Engie secure funding on terms that work, and what assets might it put on the block to keep leverage under control?
There’s a downside. Piling on both debt and equity to fund a big deal introduces plenty of variables—think approvals, financing timing, integration headaches. And those regulated returns? They can shift at the regulator’s next price review, regardless of what management promises in their slide deck.
All eyes now shift to Engie’s annual general meeting on April 29, where shareholders are set to vote on a 1.35-euro dividend proposal for 2025. The outcome will gauge just how committed the company is to cash payouts as it embarks on its largest acquisition in years. 6
