The Spanish energy group Iberdrola has acquired an 88% participation interest in the British energy company Electricity North West (ENW) in a £2.1bn (€2.5bn) deal. Iberdrola has also signed a shareholders’ agreement to collaborate on a long term basis with a consortium of Japanese investors led by Kansai Electric Company, which will retain the remaining 12% of ENW’s capital. The deal values 100% of the company, including debt, at about €5bn. The transaction is subject to standard approval by the relevant authorities.
The acquisition of a majority stake in ENW will complement Iberdrola's existing power transmission and distribution activities carried out by its subsidiary ScottishPower. ENW is located in the North West of England between the two existing ScottishPower networks license areas, in central and southern Scotland and Merseyside and North Wales. The company has around 60,000 km of electricity distribution networks, providing service to approximately 5 million people in locations like Manchester, Lancaster and Barrow.
The acquisition is in line with Iberdrola’s strategy to invest in electricity networks in strong credit rating countries, making of the UK its leading market by regulated asset base with €14bn followed by the United States with €13.3bn.
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