The Diplomat
Iberdrola yesterday signed the acquisition of 88% of Electricity North West (ENW) for an equity value of 2.1 billion pounds sterling – 2.5 billion euros. The total value of the company for 100% including debt amounts to EUR 5 billion.
This acquisition is part of Iberdrola’s strategy to strengthen its network business in countries with solid ratings, such as the UK’s AA credit rating, according to a statement from the Spanish company.
Since the purchase of Scottish Power, the UK has been one of Iberdrola’s investment destinations, with close to 36 billion euros. Iberdrola is also the only utility in the country that generates 100% emission-free energy.
With this operation, the United Kingdom becomes the company’s leading country in terms of network asset base, with around 14,000 million euros, followed by the United States with 13,300 million euros.
The Chairman of Iberdrola, Ignacio Galán, said yesterday that “with this transaction we continue our commitment to investments in electricity grids, a fundamental factor for the electrification and decarbonisation of the economy and to countries with ambitious investment plans that have stable and predictable regulations. As a result of this transaction, our regulated network assets in the UK reach €14 billion, which, together with a similar amount in the US, represent two-thirds of all the group’s network assets.”
“ENW is a unique opportunity for Iberdrola”, according to the energy company, “as it is the company that sits between Scottish Power’s two distribution companies in Scotland”.
ENW distributes electricity to almost five million customers in the northwest of England, in cities such as Manchester, Lancaster and Barrow, and has 60,000 km of electricity distribution networks.
