The CMA approves Iberdrola's acquisition of Electricity North West

The UK Competition and Markets Authority (CMA) has approved the acquisition of the 88% stake in the electricity distribution network operator Electricity North West (ENW) by Iberdrola, through its subsidiary ScottishPower. 

The acquisition is part of Iberdrola's strategy to strengthen its networks business in countries with high credit ratings, such as the UK. Iberdrola, through ScottishPower, now becomes the second largest distribution network operator in the UK, supplying electricity to around 12 million people through a network spanning more than 170,000 kilometres.

‘Electrification is driving UK growth and competitiveness, as well as improving its strategic autonomy and contributing to national security. Iberdrola continues to increase its investments here, supporting the Government's plans to modernise the country's energy system. Investments in networks are the backbone of this process,’ said Ignacio Galán, Chairman of Iberdrola and ScottishPower.

‘As we welcome our ENW colleagues into our business, we further strengthen our joint ambitions to deliver a resilient and flexible electricity grid to meet the future needs and demands of Great Britain,’ he said. 

Galán added: ’Iberdrola has been a consistent investor in the UK for almost 20 years. In addition to our current assets, valued at more than £30 billion, our plans in the country are to invest another £30 billion by the end of the decade, two-thirds in transmission and distribution networks and one-third in renewable energy, mainly offshore wind. These investments will generate significant jobs, benefits for the economy and for the country's supply chain’. 

Background: 

• ENW distributes electricity to almost 5 million people in the North West of England and has approximately 60,000 kilometres of electricity distribution networks. Geographically, ENW is located in a privileged area for Iberdrola, between the two existing ScottishPower network licence areas, in central and southern Scotland and in Merseyside and North Wales.  
• In October 2024, Iberdrola acquired 88% of ENW in the UK. As indicated at the time, the agreement values 100% of the company, including debt, at approximately €5 billion. 
• Iberdrola's partners, a consortium of investors from Japan led by Kansai, will have a 12% stake in ENW and have also signed a long-term partnership agreement with Iberdrola. 
• With the inclusion of ENW, Iberdrola now employs more than 8,500 people in the UK.