Australian mining company Macquarie has agreed a deal to purchase control of the UK’s gas infrastructure for £4.2bn ($5.5bn).

The sale will see UK-based National Grid sell a 60% stake in the country’s gas transmission network and metering services. Macquarie, alongside Canadian investment firm British Columbia Investment, will also have an option to purchase the remaining 40% stake next year. Until then, new company GasT TopCo will hold the remaining stake.

Of the £4.2bn, Macquarie will immediately pay £2.2bn in cash, with the rest of the payment funded by debt financing. The sale implies an enterprise value of £9.6bn ($12.6bn) for the entire network. Subject to regulatory approval, the companies expect the deal to close in the second half of 2022.

The purchased high-pressure transmission network will deliver gas to eight regional distribution networks. Four of these were purchased by Cadent in 2017 for £5.4bn ($7.1bn). Macquarie, in turn, owns Cadent and its gas distribution infrastructure.

The sale sees National Grid offload some of its largest gas assets as the company moves further towards electricity infrastructure. Last March, the company bought Western Power Distribution for £7.8bn in equity.

At the time, National Grid said the deal would increase its assets in electricity “from circa 60% to circa 70%”. The group reports the same ratio change for the upcoming gas deal. It also says that this agreement helps facilitate movement toward net zero, and maintain its 6-8% growth target.