Iberdrola has signed an agreement to acquire an 88% stake in Electricity North West (ENW), a power network in the UK, for an equity value of £2.1 billion (€2.5 billion). The deal values the entire company, including debt, at approximately €5 billion.
The acquisition aligns with Iberdrola's strategy of investing in electricity networks in countries with strong credit ratings, such as the United Kingdom, which holds an AA rating. The UK has been a significant investment destination for Iberdrola since its merger with ScottishPower in 2007, with the company investing around £30 billion (€36 billion) during this period.
“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,” said Ignacio Galán, Iberdrola's executive chairman. “The agreement is also consistent with our strategy to invest in countries that have ambitious investment plans and stable and predictable regulations.”
With the completion of the deal, the UK becomes Iberdrola's leading market by regulated asset base, valued at approximately €14 billion, followed by the United States at €13.3 billion.
ENW serves nearly five million people in North West England, including Manchester, Lancaster, and Barrow, through approximately 60,000 km of electricity distribution networks. The acquisition makes Iberdrola the second-largest electricity network operator in the UK, expanding its distribution reach to around 12 million people across more than 170,000 kilometers of network.
Iberdrola will collaborate with a consortium of Japanese investors, led by Kansai, which will retain 12% of ENW's capital. The acquisition is subject to standard authorizations.
