RWE E.ON has agreed to sell its UK electricity distribution company, Central Networks, to US firm PPL.

The German-owned energy giant E.ON is selling Central Networks, the second largest distributor of electricity in the UK, to Pennsylvania Power and Light for £4bn.

Central Networks operates an 80,000 mile power grid that delivers electricity to over 5 million customers in the UK.

It is part of E.ON’s plan to sell 15bn euros of assets by 2013.

PPL already owns some of the UK electricity distribution network, as they own Western Power Distribution that operates in South Wales and South West England.

PPL reportedly won the deal ahead of the Hong Kong billionaire Li Ka-Shing, owner of the consortium that bought EDF’s distribution infrastructure in November for £5.7bn.

PPL will also assume the £500m debt in Central Networks.

This is the second big deal between the two companies. Last April PPL bought E.ON’s US supply companies in a deal worth £4.1bn.

E.ON’s recent investment in the UK has been focused on greener initiatives such as wind farms and low carbon nuclear power stations.