UK Weighs Macquarie Remedy for Energy Assets Deal

The proposed divestiture would cover Energy Assets Group’s business serving commercial customers with traditional and advanced gas meters, according to a statement published Friday by the UK Competition and Markets Authority (CMA).

The regulator said the proposal could alleviate concerns that the transaction would significantly reduce competition in Britain’s non-domestic gas metering market, where a small number of companies already control much of the business.

Macquarie announced its agreement to acquire Energy Assets Group in February 2026. The transaction would bring together Macquarie-controlled National Gas Metering and Energy Assets Group, which the CMA identified as the market’s largest supplier.

According to the regulator, combining the businesses would create an exceptionally large market share in an industry with limited competition. The CMA identified Stark and SMS as the other principal competitors, noting that Macquarie also holds a minority investment in Stark.

The watchdog’s findings followed an initial, or Phase 1, investigation into the proposed acquisition.

Asset Sale Could Preserve Competition

Under the proposed remedy, Energy Assets Group would dispose of its non-domestic gas meter reading operations covering traditional and advanced meters to a buyer approved by the CMA.

The purchaser would need to demonstrate the ability to operate the acquired business as an effective independent competitor, according to the regulator’s Oct. 9 announcement.

The divestiture is intended to preserve competitive pressure in a market that provides essential services to commercial gas customers, including meter installation, maintenance and the collection of consumption information used for billing.

The CMA has determined that Macquarie’s proposal warrants further consideration but has not yet formally accepted the commitments.

Related: UK CMA Probes Macquarie’s Stake in Last Mile Infrastructure

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Sorcha O’Carroll, a senior director at the regulator, said the proposed measures could provide a solution to the competition issues identified during the investigation.

The authority will examine whether the business being sold would have the resources and commercial capabilities needed to compete with Macquarie after the transaction, according to O’Carroll’s statement.

Regulator Sets 40-Working-Day Review

The CMA plans to assess the proposed commitments over the next 40 working days, including consultations with interested third parties and an evaluation of prospective purchasers.

If the regulator concludes that the divestiture adequately protects competition, it can approve the acquisition subject to legally enforceable conditions.

Otherwise, the transaction could face a more extensive Phase 2 investigation, prolonging regulatory scrutiny of the deal.

The CMA said its initial assessment provides reasonable grounds to believe the proposed commitments, potentially with modifications, could be sufficient to resolve its concerns.

Formal acceptance would allow the acquisition to proceed under the UK’s Enterprise Act 2002 without requiring an in-depth merger investigation.

The decision represents a potential path toward regulatory clearance for Macquarie, although the outcome remains contingent on the regulator’s assessment of the proposed divestiture and the suitability of a buyer.

Source: CMA