The UK infrastructure landscape is set for a major shake-up as HICL Infrastructure and The Renewables Infrastructure Group (TRIG) agree to merge, creating a £3.98 billion ($5.2B) listed giant.
This combination marks one of the most significant moves in the UK’s alternatives and infrastructure sector in years — especially during a period of persistent valuation pressure and industry-wide convergence between core infrastructure and energy transition assets.
🔍 Key Highlights of the Merger
- 🏗 £3.98B market value, becoming the largest UK-listed infrastructure investment firm
- ⚡ Combined portfolio of:
- 100+ core infrastructure assets (social infrastructure, utilities, transport) from HICL
- 2.3 GW renewables (solar, wind, battery storage) from TRIG across the UK & Europe
- 💼 Net assets exceed £5.3B
- 🔄 TRIG will be voluntarily wound up; assets transferred to HICL
- 💷 £350M liquidity package, including:
- Partial cash exit option
- Sun Life (HICL’s manager parent) committing to share purchases post-merger
- 🗳 Combined ownership:
- HICL shareholders: 56%
- TRIG shareholders: 44%
📈 Why This Matters
RBC Capital Markets called the merger a “positive move” — citing:
- Stronger scale
- Higher return potential
- Improved competitive positioning
- Greater ability to pursue long-duration, higher-yield infrastructure & energy transition investments
Investors will gain:
- 🎯 Dividend target: 9 pence/share
- 📊 Projected NAV total return: >10% annually
⏳ Timeline
- Deal expected to close: Q1 2026
- Advisors:
- HICL → Goldman Sachs & Investec
- TRIG → BNP Paribas
🌱 A Transformational Step for UK Infrastructure
This merger reflects a broader shift:
📉 lower valuations →
📈 consolidation →
⚡ stronger platforms ready to scale energy transition & core infrastructure investment.
The combined powerhouse positions the UK as a more unified, competitive player in the future of sustainable and essential infrastructure.