Iberdrola buys ENW in the UK for €5,000 million; New business strategy: networks and regulated assets

Iberdrola The acquisition of the company has been closed. Electricity Distribution North West Electricity (ENW) For €5,000 million. Through this operation, the Spanish electricity company becomes the second regulated company for the transmission and distribution of electricity in the United Kingdom. It will distribute electricity to approximately 12 million people, will have more than 170,000 km of networks and will employ more than 8,500 people throughout the country.

ENW shares are valued at €2.1 billion, plus €2.5 billion in debt. Iberdrola joins ENW’s existing partner, a consortium of Japanese investors led by Kansai, which will retain 12% of ENW’s capital, and Iberdrola 88% after signing a shareholders’ agreement for long-term cooperation.

The network’s assets in Britain are worth $14 billion.

This acquisition, one of the strongest in the company’s history, is part of a strategy to strengthen network business in countries with strong ratings, such as the AA credit rating in the United Kingdom. “In the United Kingdom it amounts to 14,000 million euros, which, together with a similar amount in the United States, represents two-thirds of all the group’s network assets,” said Ignacio Sánchez Galán, president of Ibedrola, in the company’s statement issued yesterday.

Iberdrola arrived in the UK through the purchase of Scottish Power in 2007. Since then, Scottish Power has become one of the largest investors in renewable energy in the country, owning and operating the transmission and distribution networks in the south of Scotland, south-central Scotland, Merseyside, north Wales and Cheshire. With the acquisition of ENW, it will add five million customers in the north-west of England, in cities such as Manchester, Lancaster and Barrow, and 60,000 kilometres of additional electricity distribution networks, making Great Britain the country in which Iberdrola has the most network investments in the world.

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In the country since 2007

Since arriving in Great Britain, Iberdrola has raised $36,000 million in investments. In total, the company has 111,400 kilometers of installed power lines and 40 onshore and two offshore wind farms in operation, with a total renewable capacity of over 3,000 megawatts, supplying the equivalent of more than two million homes. As part of its growth plans in the country, it is building the East Anglia 3 offshore wind farm, the second largest in the world, with a total capacity of 1,400 megawatts.

This operation is part of Iberdrola’s new strategic priorities, which include reducing its investments in renewable energy to focus on regulated networks and assets.

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