Iberdrola Acquires Majority Stake in Electricity North West, Enhancing Commitment to UK Market

Iberdrola Acquires Majority Stake in Electricity North West, Enhancing Commitment to UK Market

(IN BRIEF) Iberdrola has acquired an 88% stake in Electricity North West (ENW) in the UK for £2.1 billion (€2.5 billion), reinforcing its commitment to investing in strong credit-rated countries. This acquisition makes the UK Iberdrola’s leading market by regulated asset base, valued at €14 billion. Iberdrola now becomes the UK’s second-largest electricity network operator, distributing electricity to around 12 million people. The acquisition is pending regulatory approval and underscores Iberdrola’s strategic growth and commitment to renewable energy in the UK.

(PRESS RELEASE) BILBAO, 3-Aug-2024 — /EuropaWire/ — Iberdrola has announced the acquisition of an 88% stake in Electricity North West (ENW) in the UK, for an equity value of £2.1 billion (€2.5 billion). This deal values the entire company, including debt, at approximately €5 billion. This acquisition aligns with Iberdrola’s strategy to invest in electricity networks in countries with strong credit ratings, such as the UK, which holds an AA credit rating.

Since merging with ScottishPower in 2007, the UK has been a significant investment destination for Iberdrola, with around £30 billion (€36 billion) invested to date. ScottishPower is the UK’s only 100% green integrated utility. With this acquisition, the UK becomes Iberdrola’s leading market by regulated asset base, now valued at approximately €14 billion, surpassing the United States at €13.3 billion.

Ignacio Galán, Iberdrola’s executive chairman, highlighted the strategic importance of the acquisition: “This transaction reinforces our commitment to investing significantly in electricity networks, which are critical for supporting the electrification and decarbonization of the economy. The agreement aligns with our strategy to invest in countries with ambitious investment plans and stable regulations. Our regulated networks asset base in the UK now stands at €14 billion, making the UK and the US two-thirds of our total global regulated asset base.”

ENW serves nearly five million people in the North West of England, including Manchester, Lancaster, and Barrow, through approximately 60,000 km of electricity distribution networks. This acquisition positions Iberdrola as the second-largest electricity network operator in the UK, now distributing electricity to around 12 million people across more than 170,000 km of network and employing over 8,500 people in the country.

Iberdrola has entered a shareholders’ agreement with a consortium of Japanese investors led by Kansai, which will retain a 12% stake in ENW, ensuring long-term collaboration.

This acquisition, pending standard regulatory approvals, underscores Iberdrola’s growth in the UK. The 2007 merger with ScottishPower was a strategic move to establish Iberdrola as a global energy leader. ScottishPower, a major investor in renewable energy, operates extensive transmission and distribution networks and serves 4.2 million customers in the UK.

Iberdrola’s UK operations include over 111,400 km of power lines, 40 onshore wind farms, and two offshore wind farms, with a total renewable capacity exceeding 3,000 MW, enough to power over two million homes emissions-free. The company is also constructing the East Anglia Three offshore wind farm, the world’s second-largest, with a capacity of 1,400 MW.

Media Contact:

Tel: +34 91 784 32 32
comunicacioncorporativa@iberdrola.es

SOURCE: Iberdrola