In a landmark deal for the London market, two FTSE 250 giants, HICL Infrastructure and The Renewables Infrastructure Group (TRIG), have agreed to merge in a blockbuster £5.3bn combination. The agreement, signed on Monday 17 November 2025, paves the way for the creation of the UK's largest listed infrastructure investment company.
The merger will see the voluntary winding up of TRIG, with its substantial portfolio of renewable energy assets being transferred to HICL. In exchange, TRIG shareholders will receive new HICL shares and cash. The proposed deal is now subject to approval from shareholders and regulators, with completion anticipated by the end of the first quarter of 2026.
Market Reaction and Deal Structure
The announcement triggered an immediate market response. HICL shares surged 5.2 per cent to 112p following the news, reflecting investor confidence in the strategic move. In contrast, TRIG shares experienced a slight dip of 0.4 per cent to 72p. Prior to the merger announcement, TRIG's stock had fallen by almost a fifth since the start of the year, while HICL shares were down around two per cent.
As part of the terms, TRIG shareholders will be offered a partial cash exit of up to £250m in aggregate, which represents approximately 11 per cent of TRIG’s share capital. Should this option see full uptake, the resulting ownership of the combined entity is projected to be 56 per cent for HICL shareholders and 44 per cent for TRIG shareholders.
Building a Diversified Powerhouse
The merger unites two highly complementary portfolios. HICL, listed in 2006, was initially set up to invest in UK Private Finance Initiative (PFI) projects. Its impressive asset roster includes the High Speed 1 rail link, the Home Office's Westminster headquarters, the Ministry of Defence's Northwood headquarters, and Lewisham Hospital.
TRIG, formed in 2013, specialises in renewable infrastructure. Its portfolio is vast, comprising stakes in dozens of wind and solar projects across Britain and Europe, with assets in Germany, France, and Spain.
Mike Bane, Chair of HICL, championed the merger, stating: "The combination of HICL and TRIG represents a unique opportunity to capture the key megatrends shaping the infrastructure market today, which increasingly straddle both core infrastructure and the energy transition." He added that the combined company would have the profile, expertise, and capital access to pursue enhanced returns through a reinvigorated investment strategy.
Shareholder meetings to vote on the historic deal are scheduled for December, setting the stage for a transformed landscape in UK infrastructure investment.
