Spanish utility company Iberdrola has acquired an 88% stake in Electricity North West (ENW) for an equity value of €2.5 billion ($2.7 billion), valuing the company, including its debt, at €5 billion.
Since merging with ScottishPower in 2007, Iberdrola has viewed the UK as a key investment destination, investing €36 billion. ScottishPower is the UK’s only fully green integrated utility.
The acquisition positions the UK at the forefront of Iberdrola’s markets by regulated asset base, now valued at €14 billion. Electricity North West, located between two ScottishPower network licence areas, serves five million people across northwest England, including Manchester and Lancaster, via its 60,000 km network. With this acquisition, Iberdrola becomes the UK’s second-largest electricity network operator, distributing power to 12 million people over a 170,000 km network and employing 8,500 people.
Iberdrola also entered a shareholders’ agreement with a consortium of Japanese investors led by Kansai, which will retain a 12% stake in ENW, setting the stage for long-term collaboration.
As a result of this acquisition, Iberdrola’s regulated networks asset base in the UK is now valued at €14 billion. In August 2024, Iberdrola received a permit to begin initial construction activities for the El Escudo wind farm in Cantabria, Spain.