Iberdola to take over Energy East

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Spanish company Iberdola, owner of ScottishPower, has announced that it has agreed a deal to takeover US company Energy East for £4.3 billion.

This will be the Iberian firm's first venture into the US and it has announced that it will pay £2.29 billion in cash and take on £2.04 billion-worth of debt for the US company.

Last week, chairman Ignacio Sanchez Galan announced that he was looking to expand into the regulated US sector - and the Spanish company will likely tap the experiences ScottishPower had with its former US subsidiary PacifiCorp, which it sold last year.

"The combination with Energy East fits with the philosophy of our strategic plan, will serve to enhance the international expansion we initiated several years ago in markets with stable growth," Mr Galan said today.

The announcement comes after a year of negotiations and it will see Iberdola's energy distribution increase by around 25 per cent.

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