Clifford Chance

Clifford Chance advises on the bridge financing for the acquisition of Western Power Distribution by National Grid

International law firm Clifford Chance advised the mandated lead arrangers in relation to the bridge financing supporting the acquisition by National Grid plc (the energy company operating in the UK and the US) of Western Power Distribution group (WPD), the UK's largest electricity distribution business, for an equity value of £7.8 billion.

The acquisition of WPD from PPL Corporation is one of three strategic transactions announced by National Grid. The company also announced the sale of The Narragansett Electric Company (its Rhode Island business) to a subsidiary of PPL Corporation for an equity value of US$3.8 billion and announced that it will commence a process later this year for the sale of a majority stake in National Grid Gas plc.

Together these transactions will strategically pivot National Grid's UK portfolio towards electricity, strengthen National Grid's long-term growth outlook by ensuring a significant scale position in electricity distribution and enhance National Grid's central role in delivering the UK's net zero targets.

The WPD acquisition is subject to approval by the shareholders of National Grid plc and to regulatory approvals and is expected to complete in the next four months.

The Clifford Chance team was led by London based partner Charles Cochrane, supported by senior associate Puja Patel, associate Christina Gu and trainee Kelvin Anim. Herbert Smith Freehills acted for National Grid on the bridge financing, led by partner Will Nevin.