Iberdrola Acquires Electricity North West for €5 Billion

07 Aug, 2024

Iberdrola Acquires Electricity North West for €5 Billion

Iberdrola has announced its acquisition of 88% of Electricity North West (ENW) in the UK for £2.1 billion (€2.5 billion). The total deal values the company, including debt, at approximately €5 billion. This acquisition aligns with Iberdrola’s strategy to expand its investment in electricity networks in countries with strong credit ratings, such as the UK.

Following the merger with ScottishPower in 2007, the UK has become a major investment focus for Iberdrola, with around £30 billion (€36 billion) invested to date. ScottishPower, the only 100% green integrated utility in the UK, further strengthens Iberdrola’s position in the market. With this deal, the UK will now be Iberdrola’s leading market by regulated asset base, valued at around €14 billion, surpassing the United States at €13.3 billion.

Electricity North West distributes power to nearly five million people across northern England and operates approximately 60,000 km of distribution networks. The acquisition will expand Iberdrola’s network to cover about 12 million people in the UK, with over 170,000 kilometers of network. This strategic move enhances Iberdrola’s position as the second largest electricity network operator in the UK and accelerates its commitment to growth in electricity networks.

The transaction is subject to standard regulatory approvals and will see Iberdrola collaborating with a Japanese consortium led by Kansai, which will retain a 12% stake in ENW.