'New Spanish Armada' buy another British firm

28th November 2006, Comments 0 comments

28 November 2006, MADRID — Iberdrola agreed to buy Scottish Power for GBP 11.6 billion, making it the latest victim of the so-called 'New Spanish Armada'.

28 November 2006

MADRID — Iberdrola agreed to buy Scottish Power for GBP 11.6 billion, making it the latest victim of the so-called 'New Spanish Armada'.

The Bilbao-based utility will pay 777 pence per share in cash and stock for 100 percent of the U.K.'s fifth-largest energy provider, Iberdrola said on Tuesday.

The move follows another bid by German energy giants E.ON  whose attempt to buy Scottish Power was rejected.

E.ON is offering EUR 37.1 billion for Spain's Endesa SA, the biggest Spanish energy company.

Buying Scottish Power will give Iberdrola 5.2 million customers and 6,200 megawatts of power-generation capacity in Britain, including wind-driven electricity turbines.

The company also owns part of the U.K.'s transmission grid and distribution network, which is the link that carries electricity from the grid to users.

Scottish Power operates power-generation and gas- storage facilities in the U.S. and Canada.

Iberdrola, the world's largest owner of wind-driven turbines, is trying to add capacity, especially in the U.S., where earlier this year it bought three wind-park developers.

The 'New Spanish Armada' is the name given to the series of Spanish companies which have taken over British ones, including Banco Santander (Abbey National) Telefonica (O2) and Ferrovial (BAA).

[Copyright EFE with Expatica]

Subject: Spanish news

 

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