Plans for what would have been a £5.3 billion infrastructure powerhouse combining HICL Infrastructure and The Renewables Infrastructure Group (TRIG) have been scrapped following resistance from key shareholders.
The deal, announced last month, aimed to create the UK’s largest listed infrastructure fund, blending HICL’s traditional projects with TRIG’s renewable energy assets.
Ambitious Merger Hits Roadblocks
HICL’s portfolio spans schools, universities, hospitals, and transport projects, including the high-speed rail link from London St Pancras to the Channel Tunnel.
TRIG, meanwhile, brings solar farms, wind energy, and battery storage into the mix.
The merger was pitched as a way to offer “greater scale, liquidity, and relevance” for investors across the board.
However, not everyone was convinced. Several of HICL’s largest backers argued that the terms favoured TRIG disproportionately.
They claimed HICL shareholders were set to shoulder the risks while benefits skewed toward TRIG, and signalled they would vote against the proposal.
Boards Acknowledge Strategic Merit but Respect Shareholders
On Monday, HICL confirmed in a stock market statement that the deal would not move forward.
The company insisted that both boards still saw strategic value in the merger, but emphasized that any combination required overwhelming shareholder support.
“Following broad engagement with shareholders, the HICL board determined that it cannot progress the transaction without a substantial majority backing from its investors,” the statement read.
Both companies stressed that they remain strong, independent entities with quality portfolios and robust strategies for long-term growth.
TRIG Focuses on Its Own Path
TRIG chairman Richard Morse said the company will now return to its standalone strategy.
He highlighted TRIG’s established platform, quality renewable assets, and pipeline of opportunities.
“Our expertise in low-carbon power and energy storage positions us well to benefit from the UK and Europe’s shift towards electrification and decarbonisation,” Morse said.
“We remain committed to delivering sustainable growth and value to our shareholders as we move forward.”
Market Reaction Follows Announcement
Investors responded quickly. TRIG shares dipped by 3.9% in early trading, reflecting the market’s reaction to the deal’s collapse, while HICL shares climbed 3.7%, suggesting confidence in the company’s independent prospects.
The aborted merger underlines the influence of large shareholders in shaping major transactions and reinforces the careful balancing act companies must perform when aligning strategic ambitions with investor sentiment.
What’s Next for HICL and TRIG
While the merger is off the table, both companies remain focused on executing their individual strategies.
HICL continues to manage its diverse infrastructure portfolio, while TRIG will capitalize on renewable energy growth and low-carbon opportunities.
Shareholders will be watching closely as each company charts its own course in a rapidly evolving market.
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