Iberdrola has received permission from the UK Competition and Markets Authority (CMA) to acquire a majority share in Electricity North West (ENW).
The Spanish utility will take over 88% of the electricity distribution network operator through its subsidiary, ScottishPower.
The acquisition is part of Iberdrola’s strategy to strengthen its networks business in countries with strong ratings, such as the UK.
ENW distributes electricity to almost 5 million people in the North West of England and has approximately 37,000 miles (60,000km) of electricity distribution networks.
Geographically, ENW is located in a prime area for Iberdrola, between the two existing ScottishPower networks licence areas, in central and southern Scotland and in Merseyside and North Wales.
Iberdrola, through ScottishPower, is now the second largest distribution network operator in the UK, delivering electricity to around 12 million people across a network spanning more than 105,000 miles (170,000km).
Iberdrola executive chairman and ScottishPower chairman Ignacio Galán said: “Electrification is powering the UK’s growth and competitiveness, as well as improving its strategic autonomy and contributing to national security. Iberdrola continues to increase its investments here in support of the Government’s plans to modernise the country’s energy system. Network investments are the backbone to this process.
“As we welcome our ENW colleagues into our business, we further strengthen our joint ambitions to deliver a resilient, flexible electricity network to meet the future needs and demands of Britain.
Iberdrola agreed the deal back in August, shelling out €2.5 billion (£2.1bn) for ENW, putting its total value, including debt, at roughly €5bn (£4.2bn).
It also brings the company’s total investment in the UK since it acquired ScottishPower in 2007 to around €36bn (£30bn).
A consortium of investors from Japan, led by Kansai, will retain the remaining 12% of ENW’s capital, and have signed a shareholders’ agreement with the Spanish company to collaborate on a long-term basis.
