Iberdrola has closed the acquisition of an 88% stake in UK-based Electricity North West (ENW).
The agreement values the entire company, including debt, at €5bn ($5.4bn).
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ENW is located in a key area for Iberdrola, between the existing ScottishPower network licence regions in central and southern Scotland and the regions of Merseyside in northwest England, and North Wales.
It delivers electricity to five million individuals across the northwest of England, including the city of Manchester and the Lake District, and manages 60,000km of distribution networks.
The acquisition aligns with Iberdrola’s strategy to bolster its network business in countries with good credit ratings such as the UK’s AA score.
The UK now stands as Iberdrola’s leading market regarding network asset base value, estimated at €14bn ($15.09bn), surpassing the US at €13.3bn at the end of the first half of 2024.
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By GlobalDataThe acquisition propels Iberdrola to the forefront as the second-largest electricity network operator in the UK.
Iberdrola’s UK network will now extend 170,000km, serving 12 million people, and its workforce will exceed 8,500 employees in the country.
In a collaborative move, Iberdrola has entered a shareholders’ agreement with a consortium of Japanese investors led by Kansai, which will maintain a 12% stake in ENW.
The transaction is currently under scrutiny by the UK Competition and Markets Authority.
In September 2024, Iberdrola launched the 496MW Saint-Brieuc offshore wind farm, 16km offshore Brittany.
