Iberdrola to Buy Majority Stake in U.K.'s Electricity North West for $2.7 Billion

By Adam Whittaker

Iberdrola entered into a 2.13 billion-pound ($2.71 billion) agreement to purchase an 88% stake in U.K power supplier Electricity North West.

The Spanish utility said Friday that a consortium led by the Japanese company Kansai Electric Power Co. will retain the remaining 12% of ENW.

Iberdrola will purchase an initial 85.6% stake in the business for GBP1.7 billion, followed by a GBP400 million capital increase to reach 88%.

The transaction is expected to be completed in the fourth quarter of the year and Iberdrola expects to have full control over ENW in the first half of 2025, it said. Iberdrola expects the deal to be earnings-enhancing from its first year, it said.

The deal is subject to competition approval as well as to approval under the National Security and Investment Act by the U.K. government. The Act grants government ministers the ability to call-in deals which pose national security risks within three months of a transaction agreement being signed.

Taking into account its debt, the deal values ENW as a whole at GBP4.21 billion, Iberdrola said.

Iberdrola's shares are up 2.7% at EUR12.48 at 1350 GMT.

Write to Adam Whittaker at [e-mail]

(END) Dow Jones Newswires

08-02-24 1013ET