The acquisition of Elektro, which recorded EBITDA of EUR370m ($548.34m) in 2010 with net earnings of EUR193m ($286m), was paid for in cash.

Elektro operates in the Brazilian states of Sao Paulo and Mato Grosso and supplied more than 11,500GWh of electricity in 2010 through a distribution network of 105,800 kms.

Iberdrola said that the acquisition is consistent with its current strategy of diversifying its geographical presence and reinforcing regulated business.

This strategy has also been reflected in divestment of non-strategic assets during 2010, including US gas subsidiaries in Connecticut and Massachusetts and other assets in Chile and Guatemala, the company said.