Iberdrola and ScottishPower now have a combined installed capacity of around 40,000MW and are world leaders in the renewables market, with 16,500MW of installed capacity. Between them, Iberdrola and ScottishPower reach a consumer base of more than 21 million across Europe and the Americas.
Iberdrola and ScottishPower signed a merger agreement on November 27, 2006 and, since then, the Spanish utility has acquired all issued ordinary shares of ScottishPower. Approximately 52.3% of the shares were purchased in exchange for cash or loan notes, with the remaining 47.7% being paid for in Iberdrola shares.
Ignacio Galan, chairman and CEO of Iberdrola, called the merger the birth of one of the largest electricity companies in the world, a leader in renewables with an enterprise value of more than E65 billion.
Iberdrola said that the combined companies’ geographical footprint is now of significant proportions, creating an Atlantic energy platform. It added that the group also has a substantial project pipeline that will enable it to continue growing in the future.
Geoff Slaughter, energy product manager at price comparison website uSwitch.com, said: The merger brings good news for the environment with Iberdola’s commitment to renewable energy good news for competition as there will still be six major players in the market and good news for customers in that ScottishPower has promised business as usual.
