French utility Engie has joined forces with Canada’s second-largest pension fund in an effort to buy Warrington-based Electricity North West (ENWL), according to a Reuters report.

Electricity North West delivers electricity to roughly five million customers across 2.4 million premises in northwest England, and employs more than 2,000 staff.

The consortium formed by Engie and Caisse de dépôt et placement du Québec (CDPQ) is set to compete with Basque energy giant Iberdrola — which is also preparing a binding offer ahead of a deadline set by ENWL shareholders for late July.

Reuters reported that ENWL could be valued at over £4 billion, with the two bidders now in direct competition following the withdrawal of private equity firms including KKR.

Iberdrola, Engie and CDPQ declined to comment.

ENWL is currently owned by a consortium led by Japan’s Kansai Electric Power Co. and investment fund Equitix, which both own 40% stakes, according to the company’s annual report.

The annual report published on Friday shows ENWL made profit before tax of £161.8 million in the year ended March 31, 2024, down from £195.5 million, on revenue of £598.1 million, up from £594.7 million.