Spanish energy giant Iberdrola to buy ENW in €2.5 b deal

Spanish energy giant Iberdrola said Friday it has agreed to buy a majority stake in British power network Electricity North West for 2.5 billion euros, part of its strategic shift towards grids businesses.

The deal to buy 88 percent of the company from a consortium of investors from Japan led by Kansai Electric Power Company values the entire British power network, including debt, at around 5.0 billion euros ($5.5 billion), Iberdrola said in a statement.

The remaining 12 percent of Electricity North West (ENW) will stay in the hands of the consortium.

ENW operates a distribution grid for around five million people in northwestern England including cities such as Manchester and Lancaster.

"This transaction reinforces our commitment to investing significantly in electricity networks, which are a critical component for supporting the electrification and decarbonisation of the economy," said Iberdrola Chairman Ignacio Galan.

"The agreement is also consistent with our strategy to invest in countries that have ambitious investment plans and stable and predictable regulations," he added.

Iberdrola already operates distribution grids in Britain through its unit Scottish Power.

The deal still must be approved by regulators.

If it gets the green light Iberdrola will distribute electricity to around 12 million people in Britain across a network spanning over 170,000 kilometres (105,000 miles).

Iberdrola posted a net profit during the first half of 2024 of 4.1 billion euros, compared to a net profit of 2.5 billion euros during the same time last year.

The company announced in March plans to invest around 41 billion euros between 2024 and 2026, mainly in Britain, the United States, and Spain and Portugal.