The UK Competition and Markets Authority (CMA) has found that Macquarie Asset Management’s (MAM) proposed acquisition of Energy Assets Group Holdings Limited (EAG) gives rise to a realistic prospect of a substantial lessening of competition in Great Britain’s non-domestic, non-smart gas metering market.
Following a Phase 1 investigation into the deal, which was agreed upon in February 2026, the regulator highlighted significant horizontal unilateral effects. MAM holds controlling interests in major utility operators, including National Gas Transmission and its subsidiary National Gas Metering (NGM). EAG is currently the largest supplier of non-domestic, non-smart gas metering services in Great Britain, a market valued at over £100 million annually.
The CMA’s analysis concluded that combining EAG with NGM would create the market’s largest provider by a substantial margin. Although NGM does not currently bid for new contracts due to regulatory constraints, it remains the incumbent provider for meter replacements and select installations. Furthermore, the regulator expects NGM to become an even stronger direct competitor to EAG once its current regulatory restrictions are lifted.
Alternative options for business customers remain limited. Beyond EAG and NGM, the market features only a few competitors, such as SMS and Stark Software International, alongside smaller providers that customers view as weak alternatives. High entry barriers—including significant upfront costs, customer switching friction, incumbency advantages, and a declining overall market—mean new entrants are unlikely to offset the reduction in competition.
To avoid an in-depth Phase 2 investigation, MAM and EAG have until October 2, 2026, to offer legally binding undertakings that remedy the identified competition concerns. If the parties fail to submit sufficient remedies, the CMA will officially refer the merger for a full secondary review.
