Australian investment manager Macquarie Group Limited (ASX:MQG) has joined forces with another shareholder to try to sell a combined £1.3 billion stake in Cadent Gas Limited, the UK?s biggest gas network, as it prepares for the transition to renewable energy. Macquarie currently owns 26% of the business and is in early stage talks to sell a near 5% stake, according to two people close to the discussions. Cadent runs about half of the UK?s eight local gas distribution networks, providing gas to 11mn homes and businesses in North West and East England, the Midlands and north London.

US-based Federated Hermes is looking to sell a 4.6% stake, the people said. It currently owns 13% of Cadent. The sale will be a key test of investor appetite for gas infrastructure as Britain tries to reduce its use of natural gas as part of its efforts to reach net zero carbon emissions by 2050.