ScottishPower owner Iberdrola will buy Britain’s Electricity North West through a deal valuing the grid operator at €5 billion (£4.3 billion).
Some 88% of the company, which operates power networks in the north west of England, will be acquired by Iberdrola for €2.5 billion, a statement said on Friday.
This will see the UK become Iberdrola’s leading market by asset base, with the company having recently sold projects in Mexico, alongside ditching plans to buy US energy firm PNM Resources.
“This transaction reinforces our commitment to investing significantly in electricity networks,” Iberdrola executive chairman Ignacio Galán commented.
“The agreement is also consistent with our strategy to invest in countries that have ambitious investment plans and stable and predictable regulations.”
Iberdrola added it would be left with a €14 billion regulated network asset base in the UK following the purchase, with Electricity North West based between areas where ScottishPower already operates.