The Competition and Markets Authority (CMA) has cleared Scottish Power owner Iberdrola’s acquisition of an 88% shareholding Electricity North West.
Iberdrola said it was part of its strategy to strengthen its networks business in countries with strong ratings, such as the UK.
The acquisition makes Iberdrola the second largest distribution network operator in the UK, with 12 million customers and a 170,000km network. ENW distributes electricity to almost 5 million people in the North West of England and has approximately 60,000 km of electricity distribution networks. It is located in a prime area for Iberdrola, between the two existing ScottishPower networks license areas, in central and southern Scotland and in Merseyside and North Wales.
The deal values 100% of the target company, including debt, at approximately €5 billion. Iberdrola’s partners, a consortium of investors from Japan, led by Kansai, will retain a 12% interest in ENW’s share capital and have also signed a shareholders’ agreement to collaborate on a long-term basis.