A consortium led by Macquarie Group Limited (ASX:MQG) and KKR & Co. Inc. (NYSE:KKR) is in advanced talks to buy the U.K. electricity distribution business controlled by Hong Kong tycoon Victor Li, in what could be one of the sector's largest deals in 2022, people familiar with the matter said. The bidder group also includes APG, China Investment Corporation, Ontario Teachers' Pension Plan Board and Public Sector Pension Investment Board, according to the people.

A deal could value UK Power Networks Holdings Limited at as much as £15 billion ($20 billion) and an agreement may be reached in the coming weeks, they said. UK Power Networks is jointly owned by the Li family's CK Infrastructure Holdings Limited (SEHK:1038) and fellow group companies Power Assets Holdings Limited (SEHK:6) and CK Asset Holdings Limited (SEHK:1113). The business could also still attract interest from other infrastructure investors and energy companies, the people said, asking not to be identified discussing confidential information.

CK Infrastructure, Power Assets and CK Asset said in a joint Hong Kong stock exchange filing March 4, 2022 that unnamed parties have expressed an interest in buying part or all of their stakes in UK Power Networks. The interest hasn't yet been properly analyzed, and there's no certainty an agreement will be reached, according to the filing. Representatives for APG, KKR, Macquarie, OTPP and PSP declined to comment, while a spokesperson for CIC couldn't immediately provide comment.