Iberdrola to buy 88% stake in Electricity North West for £2.1bn

The Spanish power company said the acquisition is consistent with its strategy to invest in electricity networks and in countries with a strong credit rating, such as the UK.

It noted that since the merger with Scottish Power in 2007, it has invested around £30bn in the UK.

Once the deal completes, the UK will become Iberdrola’s leading market by regulated asset base, which is valued at around €14bn, followed by the US at €13.3bn.

Executive chairman Ignacio Galán said: "This transaction reinforces our commitment to investing significantly in electricity networks, which are a critical component for supporting the electrification and decarbonization of the economy.

"The agreement is also consistent with our strategy to invest in countries that have ambitious investment plans and stable and predictable regulations."

ENW is located between the two existing Scottish Power networks license areas, in central and southern Scotland and Merseyside and North Wales.

The business distributes electricity to almost 5 million people in the North West of England, in locations such as Manchester, Lancaster and Barrow, and has around 60,000 km of electricity distribution networks.