Engie, Iberdrola, and investment companies are considering acquiring ENWL

French energy company Engie, along with its Spanish counterpart Iberdrola and other investment entities, are preparing to submit bids for the UK-based power network Electricity North West (ENWL), according to a report by Reuters.

The potential bidders from investment and infrastructure firms include Caisse de Dépôt et Placement du Québec (CDPQ) and a consortium consisting of private equity firm KKR and Dutch pension fund APG.

Jefferies, acting as the advisor for ENWL’s shareholders in the sale, has requested initial expressions of interest by early May 2024.Other interested parties may also present offers before the May deadline.

Interest in electricity networks like ENWL is increasing as countries aim to modernize their aging power grids to support renewable energy sources such as wind and solar power. The European Commission has estimated that Europe alone needs investments of €584bn ($619.89bn) to strengthen grid capacity for electrification and to facilitate the green transition.

The deal will bring the total valuation of ENWL to €4bn.

ENWL plays a crucial role in providing electricity to five million customers across Manchester, Lancashire, and Cumbria. ENWL is currently owned by Japan’s Kansai Electric Power Co (Kepco) and investment fund Equitix, each holding a 40% stake.

Australian infrastructure manager Macquarie has previously examined ENWL but is unlikely to submit a bid.

In March 2024, Iberdrola announced plans to invest €41bn to improve electrification and modernize grids globally, emphasizing the need for updated infrastructure to support decarbonization and the expansion of renewable energy and battery storage sectors.

source: Iberdrola

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