Iberdrola is present in the British electricity market through its subsidiary, ScottishPower. The Spanish firm is being considered as one of the possible bidders for the UK-based nuclear power generation company, British Energy. Iberdrola is expected to face stiff competition from its continental peers, E.ON, EDF, RWE and British utility group Centrica.
British Energy has become a prime target for acquisition after the UK government announced its plan to divest its 35% stake in the company. The nuclear power generator is being sought out by buyers for its highly prized nuclear sites, which are already connected to the national transmission grid.
The UK’s Nuclear Decommissioning Authority has also announced the possible availability of other nuclear sites, eliciting more interest from bidders looking to consolidate in a market which is being prepared for a nuclear revival of sorts.
Iberdrola is reportedly interested in enhancing its presence in the British energy market, where it expects one-third of electricity to be reinstated over the next decade. The Spanish firm is reportedly concerned about the dynamics of its possible takeover by EDF and the subsequent effect on its UK operations. EDF is reportedly considering a joint bid for Iberdrola with Spanish infrastructure major ACS.
