UNITED KINGDOM -- National Grid is acquiring the UK electricity distribution network operator Western Power Distribution (WPD) for around $10.8 billion.
National Grid is acquiring WPD from the US-based holding company PPL WPD Investments.
The UK electricity and gas utility will also assume WPD's debt of around $9.1 billion.
WPD is the trading identity of four electricity distribution companies that together serve 7.9 million customers across central and southwest England and south Wales.
In a separate agreement, National Grid has agreed to divest its US-based utility business Narragansett Electric (NECO) to PPL's subsidiary PPL Energy for $3.8 billion. PPL will also assume nearly $1.5bn of NECO's debt.
NECO's electricity transmission and distribution and gas distribution businesses serve nearly 780,000 customers in Rhode Island.
The electricity and gas utility company said that the deals pivot its UK portfolio strategically towards electricity.
Following the divestiture of NECO and stake sale in NGG, National Grid will have nearly 40% of its assets in the US.
The WPD transaction is anticipated to be closed within four months, while the NECO deal is expected to be completed within a year, National Grid UK said in a press release.
