Iberdrola, a Spanish electric utility company, has signed an agreement to acquire 88% of UK network operator Electricity North West (ENW) for an equity value of £2.1 billion.
Since it merged with ScottishPower in 2007, Iberdrola has invested around £30 billion in the UK. This latest deal makes the UK Iberdrola’s leading market by regulated asset base, valued at about €14 billion (£11.9 billion).
ENW distributes to almost five million people in the north-west of England, with approximately 60,000km of electricity distribution networks. It is located between two existing ScottishPower networks license areas.
The acquisition is in line with Iberdrola’s states commitment to growing its electricity networks business. The company will now distribute electricity to about 12 million people in the UK, employing over 8,500 people and becoming the second largest network operator in the UK.
Ignacio Galán, Iberdrola’s executive chairman, said: “This transaction reinforces our commitment to investing significantly in electricity networks, which are a critical component for supporting the electrification and decarbonization of the economy.
“The agreement is also consistent with our strategy to invest in countries that have ambitious investment plans and stable and predictable regulations. As a result of this acquisition, our regulated networks asset base in the UK is now valued at €14 billion. When combined with the US, these two markets now represent two-thirds of our total global regulated asset base.”
Iberdrola and a consortium of investors from Japan, led by Kansai, which will retain 12% of ENW’s capital, have signed a shareholders’ agreement to collaborate on a long-term basis.
