Spanish utility company Iberdrola has announced the acquisition of an 88% stake in Electricity North West (ENW) for an equity value of €2.5bn ($2.7bn).

The deal values the company, including its debt, at €5bn.

Since its merger with ScottishPower in 2007, Iberdrola has considered the UK a key investment destination and has put in €36bn.

ScottishPower is the UK's only fully green integrated utility.

The new acquisition propels the UK to the forefront of Iberdrola's markets by regulated asset base, now valued at €14bn.

Electricity North West, situated between two ScottishPower network licence areas, serves five million people across the northwest of England, including the cities of Manchester and Lancaster, via its 60,000km network.

With this acquisition, Iberdrola became the UK's second-largest electricity network operator, distributing power to 12 million people over a 170,000km network and employing 8,500.

The company also entered a shareholders' agreement with a consortium of Japanese investors led by Kansai, which will retain a 12% stake in ENW. The partnership is set for long-term collaboration.

Iberdrola’s executive chairman Ignacio Galán stated: “This transaction re-inforces our commitment to investing significantly in electricity networks, which are a critical component for supporting the electrification and decarbonisation of the economy.

"The agreement is consistent with our strategy to invest in countries that have ambitious investment plans and stable and predictable regulations. As a result of this acquisition, our regulated networks asset base in the UK is now valued at €14bn.

“When combined with the US, these two markets now represent two-thirds of our total global regulated asset base.”

In August 2024, Iberdrola received its permit to begin initial construction activities for the El Escudo wind farm in Cantabria, Spain.