Iberdrola Gets UK Regulatory Approval for ENW Acquisition

Wedoany.com Report-Mar 26, Iberdrola SA has received approval from the United Kingdom Competition and Markets Authority (CMA) for its acquisition of Electricity North West (ENW). Iberdrola, through its subsidiary ScottishPower, obtained an 88 percent shareholding in the electricity distribution network operator.

Iberdrola said it is now the second-largest distribution network operator in the UK.

The acquisition, according to Iberdrola, is part of its strategy to strengthen its network business in countries with strong ratings, such as the UK. Iberdrola said in a media release that through ScottishPower it now becomes the second largest distribution network operator in the UK, delivering electricity to around 12 million people across a network spanning more than 170,000 kilometers (105633 miles).

In October 2024, Iberdrola said the transaction valued ENW, including its debt, at about EUR 5 billion ($5.4 billion). Iberdrola’s partners, a group of Japanese investors led by Kansai, will maintain a 12 percent stake in ENW's capital and have also entered into a shareholders' agreement to work together in the long term, Iberdrola 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 modernize the country’s energy system. Network investments are the backbone of this process”, Ignacio Galán, Iberdrola’s Executive Chairman and ScottishPower’s Chairman, said. “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”.

ENW supplies electricity to nearly 5 million residents in the North West region of England and operates around 60,000 kilometers (37282 miles) of electricity distribution networks. Positioned between the two current ScottishPower network license zones in central and southern Scotland, as well as in Merseyside and North Wales, ENW is situated in a key location for Iberdrola, Iberdrola said.

“Iberdrola has been a steadfast investor in the UK for almost 20 years. On top of our current assets, worth more than GBP 30 billion ($38.8 billion), our plans in the country aim at investing GBP 30 billion ($38.8 billion) by the end of the decade, two-thirds in transmission and distribution networks and one-third in renewables, mainly offshore wind. These investments will deliver significant jobs, supply chain, and economic benefits to the country”, Galán said.