In October 2024, TTR Data has selected Iberdrola’s acquisition of 88% of UK-based Electricity North West as a highlight transaction.

The transaction, valued at approximately EUR 2,462m, was advised on the financial side by KPMG Spain. On the legal side, the transaction was advised by Ashurst, Clifford Chance, and Garrigues.

Iberdrola closes acquisition of 88% of Electricity North West

This acquisition is part of Iberdrola’s strategy to strengthen its network business in countries with solid ratings, such as the United Kingdom’s AA credit rating. With this transaction, the United Kingdom becomes the company’s leading country in terms of network asset base, with around 14 billion euros, followed by the United States with 13.3 billion euros at the end of the first half of 2024.

ENW is a unique opportunity for Iberdrola, as it is the company that sits between ScottishPower’s two distribution companies in Scotland and in Merseyside and Wales. It 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.

The acquisition accelerates Iberdrola’s commitment and growth in the network business, making it the second largest regulated electricity transmission and distribution company in the United Kingdom. Iberdrola will now distribute electricity to around 12 million people and will have more than 170,000 kilometers of networks. It will also employ more than 8,500 people throughout the country.

Iberdrola and a consortium of Japanese investors led by Kansai, which will hold 12% of ENW’s capital, have signed a shareholders’ agreement for long-term collaboration.

Advisors

Iberdrola has been advised by Clifford Chance with Jaime Velázquez (partner, pictured left). From the London team Nicholas Hughes (partner) and Graham Phillips (associate) counseled.

Garrigues also advised Iberdrola with a team formed by Fernando Vives (president. pictured on the middle), José Luis Ortín Romero (partner, pictured right) and María Caño Cadahía (principal associate).

The individual shareholders were advised by a London-based team from Ashurst.

Source: Iberian Lawyer - Spain