The Macquarie Group Ltd (ASX: MQG) share price is in focus on news that the global bank may be on track for a UK £10 billion investment.
That's according to the reporting by Sky News.
What's Macquarie's potential UK deal?
Australia's leading international investment bank is talking with the UK leadership in Downing Street about a potential £10 billion investment into British infrastructure. If the deal were to go ahead, it would be one of the largest investments by an overseas company in the UK.
This reportedly isn't just an idea at the early stages. Macquarie and Downing Street have been discussing things for a "number of weeks".
Macquarie is one of the world's biggest infrastructure investors. If the £10 billion deal were to go ahead, it will comprise a range of renewable energy investments. Some of these have already been publicly announced by Macquarie. But there are several new projects that are reportedly in the energy and the communications infrastructure sectors.
The Aussie investment bank already has a significant presence in the UK, including with its Green Investment Group.
Some of the current Macquarie investments in the UK include a fibre network in northern England and a large stake in Southern Water.
The investment could be a combination of capital from its own balance sheet and the funds it manages.
Why is the UK keen for Macquarie's involvement?
Politically, the UK is looking for business partnerships, investment, trade deals and so on in this post-Brexit world it now finds itself.
At the end of last year, Australia and the UK signed a trade deal.
Sky News also reported that the UK Prime Minister wants to show that he can act as a post-Brexit "magnet for overseas capital".
How likely is it to happen?
The British PM sees the potential for Macquarie's investment to help increase investment in regions of the UK a time when many of the headlines in the UK are about COVID rules being broken, according to reporting.
It's expected that Boris Johnson will visit Australia in the coming weeks and the announcement will be planned for that trip.
In a statement to Sky News, Macquarie said:
The UK is one of the best places in the world to invest in, and from.
It's our hub for operations across Europe, the Middle East and Africa and we've been proud to invest over £50bn in critical UK infrastructure in recent years.
Over the next few years, we'll progress important new investments in communities from Southampton to Orkney, in vital new infrastructure from offshore wind to ultra-fast broadband.
Maquarie share price snapshot
Over the last year the Macquarie share price has risen more than 40%. However, since the start of the year it is down around 9%.
